netspend corporation: stipulated order for permanent ......presentation at a single merchant or an...
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STATES DISTRICT COURT NORTHERN DISTRICT OF GEORGIA
FEDERAL TRADE COMMISSION
Plaintiff
v
NETSPEND CORPORATION a corporation
Defendant
Case No 116-CV-4203
STIPULATED ORDER FOR PERMANENT INJUNCTION AND MONETARY JUDGMENT
Plaintiff the Federal Trade Commission (Commission or FTC) filed
its Complaint for Permanent Injunction and Other Equitable Relief
(Complaint) against NetSpend Corporation (NetSpend or Defendant)
for a permanent injunction and other relief in this matter pursuant to
Section 13(b) of the Federal Trade Commission Act (FTC Act) 15 USC sect
53(b) The Commission and Defendant stipulate to the entry of this
Stipulated Order for Permanent Injunction and Monetary Judgment
(Order) to resolve all matters in dispute in this action between them
THEREFORE IT IS ORDERED as follows
FINDINGS
1 This Court has jurisdiction over this matter
Page 1of26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 1 of 32
The Complaint charges that Defendant participated in
deceptive acts or practices in violation of Section 5 of the FTC Act 15
USC sect 45 in connection with consumer access to funds deposited onto
Defendants prepaid debit cards claiming that approval for the cards is
guaranteed and promising provisional credits when consumers report
account errors in certain circumstances
3 For purposes of this action Defendant admits the facts
necessary to establish jurisdiction Except as so admitted and as
provided in Subsections IIIHand IIII below Defendant neither admits
nor denies the allegations of the Complaint
4 Defendant waives any claim that it may have under the Equal
Access to Justice Act 28 USC sect 2412 concerning the prosecution of this
action through the date of this Order and agrees to bear its own costs and
attorney fees
5 Defendant and the Commission waive all rights to appeal or
otherwise challenge or contest the validity of this Order
DEFINITIONS
For the purpose of this Order the following definitions apply
A Consumer Redress Period means the period from date of first
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Case 116-cv-04203-AT Document 41 Filed 033117 Page 2 of 32
of Notice as defined below until 180 days after date of entry of this
Order
B Covered Consumer Account means certain accounts acquired
by consumers between January 1 2010 and August 31 2016 that (1) were
not activated by August 31 2016 (2) were loaded with funds and (3) are not
excluded by reason of fraud prior full refund or credit return of funds to
payment source escheatment of funds or similar reason agreed upon by the
parties Covered Consumer Accounts are identified in a report previously
delivered to the FTC by Defendant
C Defendant means NetSpend Corporation and its subsidiaries
and predecessors including but not limited to Skylight Financial Inc and
their successors and assigns individually collectively or in any
combination
D Prepaid Product means an account used or marketed by
Defendant for personal family or household purposes (1) that is issued
on a prepaid basis in a specified amount or capable of being loaded with
funds thereafter and (2) that is used to conduct transactions for goods or
services or at automated teller machines or to conduct person-to-person
transfers and (3) that is not a checking account share draft account or
negotiable order of withdrawal account Provided however that a product Page 3 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 3 of 32
not be a Prepaid Product if Defendant can demonstrate that the
product is (1) a store gift card (ie a card that is redeemable upon
presentation at a single merchant or an affiliated group of merchants) (2) a
loyalty award or promotional gift card (ie a card issued in connection
with a bona fide loyalty award or promotional program to which funds are
not loaded by a consumer) or (3) a non-reloadable general-use prepaid card
that is both marketed and labeled as a gift card or gift certificate
E Issuing Banks means those financial institutions that issue
Prepaid Products with respect to which Defendant serves as the program
manager
F Parties means both the FTC and NetSpend but no other
individual or entity Notwithstanding anything to the contrary contained
in this Order this Order shall not bind the Issuing Banks
ORDER
I CLAIMS ABOUT ACCESS TO FUNDS AND OTHER MATERIAL INFORMATION
IT IS HEREBY ORDERED that Defendant Defendants officers
agents employees and attorneys and all other persons in active concert or
participation with any of them who receive actual notice of this Order
whether acting directly or indirectly in connection with the advertisement
Page 4 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 4 of 32
promotion offering for sale sale management or servicing of
any Prepaid Product are permanently restrained and enjoined from
expressly or by implication misrepresenting or assisting others in
misrepresenting
A Any fact regarding the length of time or conditions
necessary before (1) Prepaid Products will be ready to use or (2)
consumers will have access to funds
B Any fact regarding the length of time or conditions
necessary to gain approval to use a Prepaid Product including that
consumers are guaranteed approval
C Any fact regarding the protections consumers have in the
event of account errors including the terms under which Defendant
will provide provisional credits except that if Defendant can
demonstrate it made bona fide errors in compliance which were
remedied when identified then such bona fide errors in compliance
shall not constitute violations of this Subsection IC and
D The comparative benefits of Defendants Prepaid Products
to debit card accounts or other payment accounts or payment methods
including that they provide access to funds faster than debit card
accounts or other payment accounts or payment methods
Page 5 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 5 of 32
NOTICE TO THIRD PARTIES TO REMOVE CERTAIN NETSPEND MARKETING MATERIAL
A Except as set forth below in Subsection IIB Defendant shall
deliver as soon as practicable but in no event later than 60 days after entry
of this Order (the Notice Period) an exact copy of the notice attached to
this Order as Appendix A-1 showing the date of mailing to each third-party
necessary to implement the removal of Defendants marketing or advertising
material that does not comply with the standards set forth in this Order and
is still in the stream of commerce (Third Party Material) The Notice
Period and all other deadlines provided for in this Consent Order may be
extended as provided herein or by written stipulation or agreement of the
Parties without further order of the Court The notice required by this
paragraph may include attachments with copies photographs or images of
sample materials subject to removal but shall not include any other
document or enclosures other than those referenced in Appendix A-1 and
may be sent to the principal place of business of each entity Provision of
such notice by Defendant shall constitute sufficient corrective action by
Defendant with respect to Third Party Material covered by the notice
B To the extent that this Order requires Defendant to remove
from the marketplace Third Party Material as defined above in Subsection
Page 6 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 6 of 32
the replacement of which requires additional time for production andor
approval by the Issuing Banks (Production Material) then Defendant shall
deliver as soon as practicable but in no event later than the end of the
Notice Period an exact copy of the notice attached to this Order as Appendix
A-2 and the stickers with corrective text referenced in the notice to each
third-party necessary to implement the placement of the stickers on the
Production Material The text of the stickers shall be of like prominence as
the claims they correct Such notice shall show the date of mailing to each
third party to which Defendant has provided the notice The notice provided
for in this paragraph must include a sufficient quantity of stickers and may
include attachments with copies photographs or images of sample
materials illustrating the required correction but shall not include any other
document or enclosures other than those referenced in Appendix A-2 and
may be sent to the principal place of business of each entity Provision of
such notice and stickers by Defendant shall constitute sufficient corrective
action by Defendant with respect to Production Material covered by the
notice
III MONETARY JUDGMENT
IT IS FURTHER ORDERED that Defendant shall provide monetary
relief totaling no less than fifty-three million dollars ($53000000)
Page 7 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 7 of 32
of balances of forty million dollars ($40000000) on deposit in
customer accounts at Issuing Banks as of August 31 2016 and fees of
thirteen million dollars ($13000000) as follows
A Within the Notice Period Defendant shall provide a notice
substantially similar to the form set forth in Appendix B (the Notice) to all
consumers with a Covered Consumer Account for whom Defendant possesses
sufficient consumer contact information at no cost to the consumer by mail
and email (notwithstanding any prior requests by the consumer to opt out of
email messages from Defendant) and on Defendants webpage All such
Notices shall be sent within sixty (60) days after entry of this Order and
may be sent on a rolling basis during that period Provided however that
Defendant need not provide Notice
1 If Defendant can demonstrate that a Covered Consumer
Account has been activated or refunded in full had access to the funds in full
or becomes subject to the process of escheat before the Notice is required to be
sent for that account
2 If Defendant can demonstrate to the Commission that
providing Notice to a specific consumer is prohibited by law
3 By mail for Covered Consumer Accounts that had an initial
Page 8 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 8 of 32
of less than five dollars ($5) except that such notice shall still be
provided by email
4 If within five (5) business days of the entry of this Order
Defendant has initiated a process to confer with the Internal Revenue Service
(IRS) regarding (a) certain Covered Consumer Accounts with a remaining
balance associated with a tax refund and (b) whether the IRS requests the
return of such tax refund amount If the IRS responds that it does not
request the return of such tax refund amount or to the extent a consumer is
entitled to a refund of amounts in addition to the tax refund amount
Defendant shall send Notice to the consumer within the later of fourteen (14)
days of such response or the conclusion of Notice Period If the IRS requests
the return of such tax refund amounts those funds shall be returned to the
IRS
B Within thirty (30) days of the request by a consumer with a
Covered Consumer Account that is made within the Consumer Redress
Period Defendant shall send the consumer a refund check by first class US
Mail postage prepaid unless a consumer requests to receive their funds via
another method made available by Defendant and the consumer completes
any necessary identity verification and activation processes within fourteen
Page 9of26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 9 of 32
days of such request Refund checks and amounts made available via
other options shall include such Covered Consumer Account balance and fees
charged to the consumer before activation of an account that have not
already been credited All payments to consumers hereunder shall be subject
to reasonable and appropriate fraud prevention procedures and NetSpend
may decline a consumer refund request if it has credible evidence that the
request is fraudulent or duplicative For any consumer who attempts to
assert a claim to an account as to which a claim has already has been
submitted Defendant shall direct the consumer to contact the FTC to seek
any redress
C Within 30 days after the conclusion of the Consumer Redress
Period (the Fee Payment Date) Defendant shall
1 Pay to the Commission thirteen million dollars
($13000000) reflecting fees charged by Defendant (the Fee Payment
Amount) provided however that the Fee Payment Amount shall be reduced
by the amount of any fees charged as of August 31 2016 that NetSpend
subsequent to that date (a) refunded to a consumer with a Covered Consumer
Account (b) credited to activated Covered Consumer Accounts or (c) returned
to the IRS as provided above A refund shall be deemed to have occurred on
Page 10 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 10 of 32
date when a check that includes the funds is mailed or a consumer is
granted access to the funds on the consumers account Payment to the
Commission must be made by electronic fund transfer in accordance with
instructions provided by a representative of the Commission To the extent
that the foregoing reductions exceed $13000000 then additional reductions
shall be applied to the amounts to be paid to the Commission pursuant to
Subsections IIID and E
2 Provide to counsel for the Commission a sworn written
report that details (a) the disposition by account of all funds made available
or refunded to Covered Consumer Accounts (b) all claims denied with respect
to Covered Consumer Accounts because of fraud or duplication (c) funds
submitted to the IRS and (d) all funds included in the Fee Payment Amount
including any reductions thereof
D On the Fee Payment Date Defendant shall also
1 Pay to the Commission an amount comprised of (a) fees
charged if any including account maintenance fees (also referred to as
account inactivity fees) and monthly or annual plan fees to a Covered
Consumer Account between September 1 2016 and the conclusion of the
Consumer Redress Period that were not (i) refunded (ii) credited to an
Page 11of26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 11 of 32
Covered Consumer Account or otherwise made available to the
consumer (iii) returned to the IRS or (iv) charged after funds were made
available by activation of a Covered Consumer Account at the request of the
consumer in which case such fees described in clause (i) - (iv) above shall be
deemed to be funds disposed of for purposes of this Order including
Subsection IIIF and (b) any sums retained by Defendant related to a
Covered Consumer Account after the conclusion of the escheatment period
applicable to the account
2 Provide to counsel for the Commission a sworn written
report that details the disposition by account of (a) all funds paid to the
Commission under Subsection IIIDl and (b) all Covered Consumer
Accounts that were activated or closed between September 1 2016 and the
conclusion of the Consumer Redress Period
E Beginning six months after the conclusion of the Consumer
Redress Period and every six months thereafter (the Six Month
Adjustment Dates) until all funds on deposit in Covered Consumer
Accounts as of the conclusion of the Consumer Redress Period are
distributed pursuant to the following adjustments or reductions (i) funds in
Covered Consumer Accounts are refunded held in activated accounts or
Page 12 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 12 of 32
made available to consumers (ii) funds in Covered Consumer
Accounts are paid to the FTC (iii) funds in Covered Consumer Accounts are
returned to the IRS (iv) funds in Covered Consumer Accounts are paid or
returned to any other party with a bona fide claim to such funds or (v) funds
in Covered Consumer Accounts are subject to initiation of the process of
escheat (the Covered Consumer Account Adjustments) Defendant shall
sixty (60) days after each Six Month Adjustment Date (the Six Month
Payment Date)
1 Pay to the Commission an amount comprised of (a) fees
charged if any including account maintenance fees (also referred to as
account inactivity fees) and monthly or annual plan fees to a Covered
Consumer Account during that six month period that were not (i) refunded
(ii) credited to an activated Covered Consumer Account or otherwise made
available to the consumer (iii) returned to the IRS or (iv) charged after funds
were made available by activation of a Covered Consumer Account at the
request of the consumer in which case such fees described in clauses (i) middot (iv)
above shall be deemed to be funds disposed of for purposes of this Order
including Subsection IIIF and (b) any sums retained by Defendant related to
a Covered Consumer Account after the conclusion of the escheatment period
Page 13 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 13 of 32
to the account The total sum of all of the payments on the Six
Month Payment Dates shall not exceed the amount of funds on deposit in
Covered Consumer Accounts as of the conclusion of the Consumer Redress
Period and each individual payment on a Six Month Payment Date shall not
exceed the amount of funds on deposit in Covered Consumer Accounts as of
the prior Six Month Adjustment Date after applying the Covered Consumer
Account Adjustments
2 Provide to counsel for the Commission a sworn written
report that details the disposition of the following by account (a) all funds
paid to the Commission under Subsection IIIE L (b) all Covered Consumer
Accounts that were activated or closed during that six month period (c) all
Covered Consumer Account Adjustments and (d) all funds that remain on
deposit in Covered Consumer Accounts after application of the Covered
Consumer Adjustments
F To the extent that any funds included in the monetary relief
identified in this Section that totals no less than fifty-three million dollars
($53000000) are not disposed of by operation of Subsections IIIA -IIIE
Defendant shall pay the amount not disposed of by operation of Subsections
IIIA -IIIE to the Commission sixty days after the last Six Month Payment
Page 14 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 14 of 32
G Defendant relinquishes dominion and all legal and equitable
right title and interest in all assets transferred to the FTC the IRS
consumers or any third-party pursuant to this Order and may not seek the
return of any assets
H The facts alleged in the Complaint will be taken as true
without further proof in any subsequent civil litigation by or on behalf of
the Commission to enforce its rights to any payment or monetary judgment
pursuant to this Order such as a claim of nondischargeability in any
bankruptcy case
I The facts alleged in the Complaint establish all elements
necessary to sustain an action by the Commission pursuant to Section
523(a)(2)(A) of the Bankruptcy Code 11 USC sect 523(a)(2)(A) and this
Order will have collateral estoppel effect for such purposes
J Defendants admissions in Subsections IIIHand IIII above are
not intended to be nor shall they be construed as admissions with respect to
any claim by any third party
K Defendant acknowledges that its Taxpayer Identification
Numbers (Social Security Numbers or Employer Identification Numbers)
Page 15 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 15 of 32
Defendant must submit to the Commission may be used for
collecting and reporting on any delinquent amount arising out of this Order
in accordance with 31 USC sect7701
L All money paid to the Commission pursuant to this Order may be
deposited into a fund administered by the Commission or its designee to be
used for equitable relief including consumer redress and any attendant
expenses for the administration of any redress fund If a representative of
the Commission decides that direct redress to consumers is wholly or
partially impracticable or money remains after redress is completed the
Commission may apply any remaining money for such other equitable relief
(including consumer information remedies) as it determines to be reasonably
related to Defendants practices alleged in the Complaint Any money not
used for such equitable relief is to be deposited to the US Treasury as
disgorgement Defendant has no right to challenge any actions the
Commission or its representatives may take pursuant to this Subsection
IV CUSTOMER INFORMATION
IT IS FURTHER ORDERED that Defendant Defendants officers
agents employees and attorneys and all other persons in active concert
or participation with any of them who receive actual notice of this Order
Page 16 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 16 of 32
acting directly or indirectly are permanently restrained and
enjoined from failing to provide customer information in its possession
custody or control that is sufficient to enable the Commission to efficiently
administer consumer redress including consumer name phone number
address other contact information account number and account balance or
other reasonably available information that the Commission requests to
effectuate consumer redress If a representative of the Commission requests
in writing any such information in Defendants possession custody or
control related to redress Defendant must provide it in the form prescribed
by the Commission within 14 business days
The Parties anticipate that consumers may make inquiries to
Defendant regarding consumer funds subject to this Order Defendant shall
maintain a record of such contacts including consumer contact information
and shall provide such records to the Commission as required in this Section
IV Following receipt of consumer inquiries that should properly be directed
to the Commission rather than Defendant Defendant shall direct the
consumer to contact the FTC at a number and address specified by the FTC
for this purpose
Page 17 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 17 of 32
ORDER ACKNOWLEDGMENTS
IT IS FURTHER ORDERED that Defendant obtains
acknowledgments of receipt of this Order
A Defendant within 7 days of entry of this Order must submit to
the Commission an acknowledgment of receipt of this Order sworn under
penalty of perjury
B For 5 years after entry of this Order Defendant must deliver
a copy of this Order to (I) all principals officers and directors (2) all
employees agents and representatives with authority to approve
advertising or marketing material on behalf of Defendant for any
Prepaid Product and all employees who supervise the formulation of
advertising and marketing material for any Prepaid Product and (3) any
business entity resulting from any change in structure as set forth in the
Section titled Compliance Reporting Delivery must occur within 7 days
of entry of this Order for current personnel For all others delivery must
occur before they assume their responsibilities
C From each individual or entity to which Defendant delivered
a copy of this Order Defendant must obtain within 30 days a signed
and dated acknowledgment of receipt of this Order (an Order
Acknowledgement) Page 18 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 18 of 32
COMPLIANCE REPORTING
IT IS FURTHER ORDERED that Defendant make timely
submissions to the Commission
A One year after entry of this Order Defendant must submit a
compliance report sworn under penalty of perjury Defendant must
1 identify the primary physical postal and email address
and telephone number as designated points of contact which
representatives of the Commission may use to communicate with Defendant
2 identify all of Defendants businesses by all of their
names telephone numbers and physical postal email and Internet
addresses
3 describe the activities of each business including the
goods and services offered and the means of advertising marketing and
sales
4 describe in detail whether and how Defendant is in
compliance with each Section of this Order and
5 provide a copy of each Order Acknowledgment obtained
pursuant to this Order unless previously submitted to the Commission
B For 20 years after entry of this Order Defendant must submit a
compliance notice sworn under penalty of perjury within 14 days of any
Page 19 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 19 of 32
in the following
1 any designated point of contact or
2 the structure of Defendant or any entity that Defendant
has any ownership interest in or controls directly or indirectly that may
affect compliance obligations arising under this Order including creation
merger sale or dissolution of the entity or any subsidiary parent or
affiliate that engages in any acts or practices subject to this Order
C Defendant must submit to the Commission notice of the filing
of any bankruptcy petition insolvency proceeding or similar proceeding by
or against Defendant within 14 days of its filing
D Any submission to the Commission required by this Order to be
sworn under penalty of perjury must be true and accurate and comply with
28 USC sect 1746 such as by concluding I declare under penalty of perjury
under the laws of the United States of America that the foregoing is true
and correct Executed on [date] and supplying the date signatorys full
name title (if applicable) and signature
E Unless otherwise directed by a Commission representative in
writing all submissions to the Commission pursuant to this Order must be
emailed to DEbriefftcgov or sent by overnight courier (not the US Postal
Service) to Associate Director for Enforcement Bureau of Consumer
Page 20 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 20 of 32
Federal Trade Commission 600 Pennsylvania Avenue NW
Washington DC 20580 The subject line must begin FTC v NetSpend
Corporation Xl 70006
VII RECORDKEEPING
IT IS FURTHER ORDERED that Defendant must create certain
records for 20 years after entry of the Order and retain each such record for
5 years Specifically Defendant must create and retain the following
records in connection with the advertisement marketing promotion
offering for sale sale management or servicing of any Prepaid Product
A accounting records showing the revenues from all such goods
or services sold
B personnel records of Defendant showing for each individual
providing services whether as an employee or otherwise that persons
name addresses telephone numbers job title or position dates of service
and (if applicable) the reason for termination
C records of all consumer complaints whether received directly
or indirectly related to access to funds which shall include but not be
limited to available consumer contact information date of complaint
source of complaint category of complaint and the outcome provided that
this Subparagraph shall apply only to consumer complaints related to
Page 21of26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 21 of 32
to funds received directly or indirectly from a consumer a federal or
state agency the Better Business Bureau State Attorneys General as
well as any consumer lawsuit
D all records necessary to demonstrate full compliance with each
provision of this Order including all submissions to the Commission
E a copy of each unique advertisement or other marketing
material created produced or approved by Defendant and
F records of blocks that restrict consumer access to Prepaid
Products requests by consumers to activate and register Prepaid
Products when submitted directly to Defendant or when records of such
requests are available to Defendant requests by consumers to lift blocks
on Prepaid Products requests by consumers for closure of Prepaid Product
accounts and any subsequent disbursements of funds to consumers
consumer notifications of account errors and disbursements of provisional
credits Provided however that to the extent Defendant does not
maintain records as provided in this Subsection in the ordinary course of
business as of the date of this Order and must implement new record
keeping policies systems or procedures to create them Defendant shall
implement such policies systems or procedures within 90 days after the
date of this Order Provided further that Defendant shall not be required
Page 22 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 22 of 32
create or maintain any record identified in this Subsection if Defendant
demonstrates that it is prohibited by banking law or regulation from
creating or maintaining such record
VIII COMPLIANCE MONITORING
IT IS FURTHER ORDERED that for the purpose of monitoring
Defendants compliance with this Order and any failure to transfer any
assets as required by this Order
A Within 14 days of receipt of a written request from a
representative of the Commission Defendant must submit additional
compliance reports or other requested information which must be sworn
under penalty of perjury and appear for depositions and produce
documents for inspection and copying The Commission is also authorized
to obtain discovery without further leave of court using any of the
procedures prescribed by Federal Rules of Civil Procedure 29 30 (including
telephonic depositions) 31 33 34 36 45 and 69
B For matters concerning this Order the Commission is
authorized to communicate directly with Defendant Defendant must
permit representatives of the Commission to interview any employee or
Page 23 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 23 of 32
person affiliated with Defendant who has agreed to such an
interview The person interviewed may have counsel present
C The Commission may use all other lawful means including
posing through its representatives as consumers suppliers or other
individuals or entities to Defendant or any individual or entity affiliated
with Defendant without the necessity of identification or prior notice
Nothing in this Order limits the Commissions lawful use of compulsory
process pursuant to Sections 9 and 20 of the FTC Act 15 USC sectsect 49
57b-l
IX RETENTION OF JURISDICTION
IT IS FURTHER ORDERED that this Court retains jurisdiction of this
matter for purposes of construction modification and enforcement of this
Order
SO ORDERED this ___ day of ____________ _ 2017
Amy Totenberg UNITED STATES DISTRICT JUDGE
Page 24 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 24 of 32
STIPULATED AND AGREED FOR
PLAINTIFF
FEDERAL TRADE COJM11ISSION
Dated jQH~ S ( 2-6 - - -=--=---------------- ------
7
Mark By fe~~
Glassman Adam M Wesolowski Federal Trade Commission 600 Pennsylvania Avenue NW Mailstop CC-10232 Washington DC 20580 Email mglassmanftcgov awesolowskiftcgov Phone (202) 326-2826 (Glassman) (202) 326-3068 (Wesolowski) Fax (202) 326-3768
By 12rdf-d-cgtltd ~ Robin L Rock (Bar No 629532) Federal Trade Commission 225 Peachtree Street NE Suite 1500 Atlanta GA 30303 Email rrockftcgov Phone (404) 656-1368 Fax (404) 656-1379
Attorneys for Plaintiff FEDERAL TRADE COMMISSION
Page 25 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 25 of 32
DE~gSPEND CORPORATION
Diane By~
McCartnev fv~~
- d Vice President Compliance NETSPEND CORPORATION
MORRISON amp FOERSTER LLP
Steven JVI Kaufmann Natalie Fleming ~olen 2000 Pennsylvania Avenue Vv ashington DC 20006 Telephone (212) 468middot8000 Ekfl 11fm ann~mofocom nilemi]1g_g_ol~n(~mofoco1y~
Sarah N Davis 425 Market Street San Francisco California 94105-2482 Telephone (415) 268-7000 Sarah Do yi s(ahn ofo com
By---~-=-~+----=-1i__~___ Michael B Terry Georgia Bar No 702582 BONDURANl MIXSON amp ELMORE LLP 1201 West Peachtree Street NV Suite 3900 Atlanta GA 30309 Email er1middotvbm elaw99nl (404) 881 middot4100
Attorneys for Defendant NetSpend Corporation
Page 26 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 26 of 32
Case 116-cv-04203-AT Document 41 Filed 033117 Page 27 of 32
Appendix A-1
[ON NETSPEND CORPORATION LETTERHEAD]
IMPORTANT NOTICE TO REMOVE NETSPEND CARD MATERIALS TO COMPLY WITH FEDERAL COURT ORDER
[insert addressee name][insert addressee address]
Dear [Third Party]
In response to a settlement with the Federal Trade Commission NetSpend Corporation (NetSpend) has agreed to a court order prohibiting the use of certain claims in marketing and other materials In accordance with this order NetSpend directs that within sixty (60) days of the date of this letter you stop using any existing NetSpend materials that state that NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval Attached hereto are copies photographs or images of sample materials subject to removal NetSpend willmake revised materials available to you shortly if it has not already provided such materials
Should you have any questions about compliance with this notification please contact [insert NetSpend contact person] Further information about the order can be obtained by visiting wwwftcgov and searching for ldquoNetSpendrdquo
Sincerely
[Name][Title]NetSpend Corporation
Case 116-cv-04203-AT Document 41 Filed 033117 Page 28 of 32
Appendix A-2
[ON NETSPEND CORPORATION LETTERHEAD]
IMPORTANT NOTICE TO UPDATE NETSPEND CARD MATERIALS TO COMPLY WITH FEDERAL COURT ORDER
[insert addressee name][insert addressee address]
Dear [Third Party]
In response to a settlement with the Federal Trade Commission NetSpend Corporation (NetSpend) has agreed to a court order prohibiting the use of certain claims in marketing and other materials In accordance with this order NetSpend [as applicable ndash as successor-in-interest to Skylight Financial Inc] directs that you affix corrective stickers to any existing NetSpend materials that state NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval
Enclosed with this letter are corrective stickers stating ldquoYou must meet identity verification requirements to activate and use the cardrdquo These stickers must be placed on the NetSpend materials in close proximity to such statements that NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval If the foregoingstatements are contained within an envelope or package that is already sealed then the sticker shall be placed in a prominent position on the outside of the envelope or package Attached also are copies photographs or images of sample materials illustrating the required correction
Should you have any questions about compliance with this notification please contact [insert NetSpend contact person] Further information about the order can be obtained by visiting wwwftcgov and searching for ldquoNetSpendrdquo
Sincerely
[Name][Title]NetSpend Corporation
Case 116-cv-04203-AT Document 41 Filed 033117 Page 29 of 32
Appendix B
Subject line of e-mail NetSpend [or such other NetSpend brand eg PayPal] Card Refunds Available
You may be eligible for a refund related to your [Branded Name (as applicable)] prepaid card [managed by NetSpend (as necessary where a branded name is used)] Under a settlement with the Federal Trade Commission NetSpend will refund certain customers
If you wish to receive your money via check complete this personalized request form [REQUEST FORM (Link to Personalized Survey per customer) Samplehttpswwwnetspendcomaccountcs surveymid= 1052492523ampsid=601] by ltDate of End of Redress Periodgt
After ltDate of End of Redress Periodgt you will need to contact both the FTC and NetSpend to receive your funds
NetSpend will mail checks within 30 days of receiving a valid request form
If instead of getting a check by filling out the form linked above you would like us to send your refund to an existing NetSpend card please contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 You may be required to submit identification documents to NetSpend to activate your card and access your money
For more information about the program visit wwwftcgovNetSpend If youhave any problems receiving your funds please let the FTC know by emailing NetSpendftcgov
Online Check Request Form
Under the terms of NetSpendrsquos settlement with the Federal Trade Commission [link to wwwftcgovNetSpend] NetSpend will refund certain customers who loaded money on cards
How you would like to receive your money
Case 116-cv-04203-AT Document 41 Filed 033117 Page 30 of 32
_____ Close my account and mail a check to the address on my account
_____ Close my account and mail a check to another address (please enter your new address below)
_____I would like to contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 to receive my funds via a NetSpend card I understand that with this option I may be required to submit identification documents to NetSpend to activate my card and access my money
New Address Street
City
State
Zip
Phone
Finish
Case 116-cv-04203-AT Document 41 Filed 033117 Page 31 of 32
Subject line of mailed letter NetSpend [or applicable NetSpend brand eg PayPal] Card Refunds Available
You may be eligible for a refund related to your [Brand Name (as applicable)] prepaid card [managed by NetSpend (as necessary where a branded name is used)] Under a settlement with the Federal Trade Commission NetSpend willrefund certain customers
If you wish to receive your money via check complete the personalized formbelow by ltDate of End of Redress Periodgt and return it to NetSpend in the enclosed envelope If you received a refund notice from NetSpend by email you may instead go to the personalized request form linked in the email to request your refund
After ltDate of End of Redress Periodgt you will need to contact both the FTC and NetSpend to receive your funds
NetSpend will mail checks within 30 days of receiving a valid request form
For more information about the program visit wwwftcgovNetSpend If youhave any problems receiving your funds please let the FTC know by emailing NetSpendftcgov
Reference Number _________ Name ltFirst Namegt ltLast Namegt Account Address ltStreetgt ltCitygt ltStategt ltZipgt
Check Request
_____ Close my account and mail a check to the address on my account
_____ Close my account and mail a check to another address (please enter your new address below)
Street
City
Case 116-cv-04203-AT Document 41 Filed 033117 Page 32 of 32
State
Zip
Phone
_____I would like to contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 to receive my funds via a NetSpend card I understand that with this option I may be required to submit identification documents to NetSpend to activate my card and access my money
Enclosure Envelope addressed to NetSpend with postage prepaid
The Complaint charges that Defendant participated in
deceptive acts or practices in violation of Section 5 of the FTC Act 15
USC sect 45 in connection with consumer access to funds deposited onto
Defendants prepaid debit cards claiming that approval for the cards is
guaranteed and promising provisional credits when consumers report
account errors in certain circumstances
3 For purposes of this action Defendant admits the facts
necessary to establish jurisdiction Except as so admitted and as
provided in Subsections IIIHand IIII below Defendant neither admits
nor denies the allegations of the Complaint
4 Defendant waives any claim that it may have under the Equal
Access to Justice Act 28 USC sect 2412 concerning the prosecution of this
action through the date of this Order and agrees to bear its own costs and
attorney fees
5 Defendant and the Commission waive all rights to appeal or
otherwise challenge or contest the validity of this Order
DEFINITIONS
For the purpose of this Order the following definitions apply
A Consumer Redress Period means the period from date of first
Page 2 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 2 of 32
of Notice as defined below until 180 days after date of entry of this
Order
B Covered Consumer Account means certain accounts acquired
by consumers between January 1 2010 and August 31 2016 that (1) were
not activated by August 31 2016 (2) were loaded with funds and (3) are not
excluded by reason of fraud prior full refund or credit return of funds to
payment source escheatment of funds or similar reason agreed upon by the
parties Covered Consumer Accounts are identified in a report previously
delivered to the FTC by Defendant
C Defendant means NetSpend Corporation and its subsidiaries
and predecessors including but not limited to Skylight Financial Inc and
their successors and assigns individually collectively or in any
combination
D Prepaid Product means an account used or marketed by
Defendant for personal family or household purposes (1) that is issued
on a prepaid basis in a specified amount or capable of being loaded with
funds thereafter and (2) that is used to conduct transactions for goods or
services or at automated teller machines or to conduct person-to-person
transfers and (3) that is not a checking account share draft account or
negotiable order of withdrawal account Provided however that a product Page 3 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 3 of 32
not be a Prepaid Product if Defendant can demonstrate that the
product is (1) a store gift card (ie a card that is redeemable upon
presentation at a single merchant or an affiliated group of merchants) (2) a
loyalty award or promotional gift card (ie a card issued in connection
with a bona fide loyalty award or promotional program to which funds are
not loaded by a consumer) or (3) a non-reloadable general-use prepaid card
that is both marketed and labeled as a gift card or gift certificate
E Issuing Banks means those financial institutions that issue
Prepaid Products with respect to which Defendant serves as the program
manager
F Parties means both the FTC and NetSpend but no other
individual or entity Notwithstanding anything to the contrary contained
in this Order this Order shall not bind the Issuing Banks
ORDER
I CLAIMS ABOUT ACCESS TO FUNDS AND OTHER MATERIAL INFORMATION
IT IS HEREBY ORDERED that Defendant Defendants officers
agents employees and attorneys and all other persons in active concert or
participation with any of them who receive actual notice of this Order
whether acting directly or indirectly in connection with the advertisement
Page 4 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 4 of 32
promotion offering for sale sale management or servicing of
any Prepaid Product are permanently restrained and enjoined from
expressly or by implication misrepresenting or assisting others in
misrepresenting
A Any fact regarding the length of time or conditions
necessary before (1) Prepaid Products will be ready to use or (2)
consumers will have access to funds
B Any fact regarding the length of time or conditions
necessary to gain approval to use a Prepaid Product including that
consumers are guaranteed approval
C Any fact regarding the protections consumers have in the
event of account errors including the terms under which Defendant
will provide provisional credits except that if Defendant can
demonstrate it made bona fide errors in compliance which were
remedied when identified then such bona fide errors in compliance
shall not constitute violations of this Subsection IC and
D The comparative benefits of Defendants Prepaid Products
to debit card accounts or other payment accounts or payment methods
including that they provide access to funds faster than debit card
accounts or other payment accounts or payment methods
Page 5 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 5 of 32
NOTICE TO THIRD PARTIES TO REMOVE CERTAIN NETSPEND MARKETING MATERIAL
A Except as set forth below in Subsection IIB Defendant shall
deliver as soon as practicable but in no event later than 60 days after entry
of this Order (the Notice Period) an exact copy of the notice attached to
this Order as Appendix A-1 showing the date of mailing to each third-party
necessary to implement the removal of Defendants marketing or advertising
material that does not comply with the standards set forth in this Order and
is still in the stream of commerce (Third Party Material) The Notice
Period and all other deadlines provided for in this Consent Order may be
extended as provided herein or by written stipulation or agreement of the
Parties without further order of the Court The notice required by this
paragraph may include attachments with copies photographs or images of
sample materials subject to removal but shall not include any other
document or enclosures other than those referenced in Appendix A-1 and
may be sent to the principal place of business of each entity Provision of
such notice by Defendant shall constitute sufficient corrective action by
Defendant with respect to Third Party Material covered by the notice
B To the extent that this Order requires Defendant to remove
from the marketplace Third Party Material as defined above in Subsection
Page 6 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 6 of 32
the replacement of which requires additional time for production andor
approval by the Issuing Banks (Production Material) then Defendant shall
deliver as soon as practicable but in no event later than the end of the
Notice Period an exact copy of the notice attached to this Order as Appendix
A-2 and the stickers with corrective text referenced in the notice to each
third-party necessary to implement the placement of the stickers on the
Production Material The text of the stickers shall be of like prominence as
the claims they correct Such notice shall show the date of mailing to each
third party to which Defendant has provided the notice The notice provided
for in this paragraph must include a sufficient quantity of stickers and may
include attachments with copies photographs or images of sample
materials illustrating the required correction but shall not include any other
document or enclosures other than those referenced in Appendix A-2 and
may be sent to the principal place of business of each entity Provision of
such notice and stickers by Defendant shall constitute sufficient corrective
action by Defendant with respect to Production Material covered by the
notice
III MONETARY JUDGMENT
IT IS FURTHER ORDERED that Defendant shall provide monetary
relief totaling no less than fifty-three million dollars ($53000000)
Page 7 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 7 of 32
of balances of forty million dollars ($40000000) on deposit in
customer accounts at Issuing Banks as of August 31 2016 and fees of
thirteen million dollars ($13000000) as follows
A Within the Notice Period Defendant shall provide a notice
substantially similar to the form set forth in Appendix B (the Notice) to all
consumers with a Covered Consumer Account for whom Defendant possesses
sufficient consumer contact information at no cost to the consumer by mail
and email (notwithstanding any prior requests by the consumer to opt out of
email messages from Defendant) and on Defendants webpage All such
Notices shall be sent within sixty (60) days after entry of this Order and
may be sent on a rolling basis during that period Provided however that
Defendant need not provide Notice
1 If Defendant can demonstrate that a Covered Consumer
Account has been activated or refunded in full had access to the funds in full
or becomes subject to the process of escheat before the Notice is required to be
sent for that account
2 If Defendant can demonstrate to the Commission that
providing Notice to a specific consumer is prohibited by law
3 By mail for Covered Consumer Accounts that had an initial
Page 8 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 8 of 32
of less than five dollars ($5) except that such notice shall still be
provided by email
4 If within five (5) business days of the entry of this Order
Defendant has initiated a process to confer with the Internal Revenue Service
(IRS) regarding (a) certain Covered Consumer Accounts with a remaining
balance associated with a tax refund and (b) whether the IRS requests the
return of such tax refund amount If the IRS responds that it does not
request the return of such tax refund amount or to the extent a consumer is
entitled to a refund of amounts in addition to the tax refund amount
Defendant shall send Notice to the consumer within the later of fourteen (14)
days of such response or the conclusion of Notice Period If the IRS requests
the return of such tax refund amounts those funds shall be returned to the
IRS
B Within thirty (30) days of the request by a consumer with a
Covered Consumer Account that is made within the Consumer Redress
Period Defendant shall send the consumer a refund check by first class US
Mail postage prepaid unless a consumer requests to receive their funds via
another method made available by Defendant and the consumer completes
any necessary identity verification and activation processes within fourteen
Page 9of26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 9 of 32
days of such request Refund checks and amounts made available via
other options shall include such Covered Consumer Account balance and fees
charged to the consumer before activation of an account that have not
already been credited All payments to consumers hereunder shall be subject
to reasonable and appropriate fraud prevention procedures and NetSpend
may decline a consumer refund request if it has credible evidence that the
request is fraudulent or duplicative For any consumer who attempts to
assert a claim to an account as to which a claim has already has been
submitted Defendant shall direct the consumer to contact the FTC to seek
any redress
C Within 30 days after the conclusion of the Consumer Redress
Period (the Fee Payment Date) Defendant shall
1 Pay to the Commission thirteen million dollars
($13000000) reflecting fees charged by Defendant (the Fee Payment
Amount) provided however that the Fee Payment Amount shall be reduced
by the amount of any fees charged as of August 31 2016 that NetSpend
subsequent to that date (a) refunded to a consumer with a Covered Consumer
Account (b) credited to activated Covered Consumer Accounts or (c) returned
to the IRS as provided above A refund shall be deemed to have occurred on
Page 10 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 10 of 32
date when a check that includes the funds is mailed or a consumer is
granted access to the funds on the consumers account Payment to the
Commission must be made by electronic fund transfer in accordance with
instructions provided by a representative of the Commission To the extent
that the foregoing reductions exceed $13000000 then additional reductions
shall be applied to the amounts to be paid to the Commission pursuant to
Subsections IIID and E
2 Provide to counsel for the Commission a sworn written
report that details (a) the disposition by account of all funds made available
or refunded to Covered Consumer Accounts (b) all claims denied with respect
to Covered Consumer Accounts because of fraud or duplication (c) funds
submitted to the IRS and (d) all funds included in the Fee Payment Amount
including any reductions thereof
D On the Fee Payment Date Defendant shall also
1 Pay to the Commission an amount comprised of (a) fees
charged if any including account maintenance fees (also referred to as
account inactivity fees) and monthly or annual plan fees to a Covered
Consumer Account between September 1 2016 and the conclusion of the
Consumer Redress Period that were not (i) refunded (ii) credited to an
Page 11of26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 11 of 32
Covered Consumer Account or otherwise made available to the
consumer (iii) returned to the IRS or (iv) charged after funds were made
available by activation of a Covered Consumer Account at the request of the
consumer in which case such fees described in clause (i) - (iv) above shall be
deemed to be funds disposed of for purposes of this Order including
Subsection IIIF and (b) any sums retained by Defendant related to a
Covered Consumer Account after the conclusion of the escheatment period
applicable to the account
2 Provide to counsel for the Commission a sworn written
report that details the disposition by account of (a) all funds paid to the
Commission under Subsection IIIDl and (b) all Covered Consumer
Accounts that were activated or closed between September 1 2016 and the
conclusion of the Consumer Redress Period
E Beginning six months after the conclusion of the Consumer
Redress Period and every six months thereafter (the Six Month
Adjustment Dates) until all funds on deposit in Covered Consumer
Accounts as of the conclusion of the Consumer Redress Period are
distributed pursuant to the following adjustments or reductions (i) funds in
Covered Consumer Accounts are refunded held in activated accounts or
Page 12 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 12 of 32
made available to consumers (ii) funds in Covered Consumer
Accounts are paid to the FTC (iii) funds in Covered Consumer Accounts are
returned to the IRS (iv) funds in Covered Consumer Accounts are paid or
returned to any other party with a bona fide claim to such funds or (v) funds
in Covered Consumer Accounts are subject to initiation of the process of
escheat (the Covered Consumer Account Adjustments) Defendant shall
sixty (60) days after each Six Month Adjustment Date (the Six Month
Payment Date)
1 Pay to the Commission an amount comprised of (a) fees
charged if any including account maintenance fees (also referred to as
account inactivity fees) and monthly or annual plan fees to a Covered
Consumer Account during that six month period that were not (i) refunded
(ii) credited to an activated Covered Consumer Account or otherwise made
available to the consumer (iii) returned to the IRS or (iv) charged after funds
were made available by activation of a Covered Consumer Account at the
request of the consumer in which case such fees described in clauses (i) middot (iv)
above shall be deemed to be funds disposed of for purposes of this Order
including Subsection IIIF and (b) any sums retained by Defendant related to
a Covered Consumer Account after the conclusion of the escheatment period
Page 13 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 13 of 32
to the account The total sum of all of the payments on the Six
Month Payment Dates shall not exceed the amount of funds on deposit in
Covered Consumer Accounts as of the conclusion of the Consumer Redress
Period and each individual payment on a Six Month Payment Date shall not
exceed the amount of funds on deposit in Covered Consumer Accounts as of
the prior Six Month Adjustment Date after applying the Covered Consumer
Account Adjustments
2 Provide to counsel for the Commission a sworn written
report that details the disposition of the following by account (a) all funds
paid to the Commission under Subsection IIIE L (b) all Covered Consumer
Accounts that were activated or closed during that six month period (c) all
Covered Consumer Account Adjustments and (d) all funds that remain on
deposit in Covered Consumer Accounts after application of the Covered
Consumer Adjustments
F To the extent that any funds included in the monetary relief
identified in this Section that totals no less than fifty-three million dollars
($53000000) are not disposed of by operation of Subsections IIIA -IIIE
Defendant shall pay the amount not disposed of by operation of Subsections
IIIA -IIIE to the Commission sixty days after the last Six Month Payment
Page 14 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 14 of 32
G Defendant relinquishes dominion and all legal and equitable
right title and interest in all assets transferred to the FTC the IRS
consumers or any third-party pursuant to this Order and may not seek the
return of any assets
H The facts alleged in the Complaint will be taken as true
without further proof in any subsequent civil litigation by or on behalf of
the Commission to enforce its rights to any payment or monetary judgment
pursuant to this Order such as a claim of nondischargeability in any
bankruptcy case
I The facts alleged in the Complaint establish all elements
necessary to sustain an action by the Commission pursuant to Section
523(a)(2)(A) of the Bankruptcy Code 11 USC sect 523(a)(2)(A) and this
Order will have collateral estoppel effect for such purposes
J Defendants admissions in Subsections IIIHand IIII above are
not intended to be nor shall they be construed as admissions with respect to
any claim by any third party
K Defendant acknowledges that its Taxpayer Identification
Numbers (Social Security Numbers or Employer Identification Numbers)
Page 15 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 15 of 32
Defendant must submit to the Commission may be used for
collecting and reporting on any delinquent amount arising out of this Order
in accordance with 31 USC sect7701
L All money paid to the Commission pursuant to this Order may be
deposited into a fund administered by the Commission or its designee to be
used for equitable relief including consumer redress and any attendant
expenses for the administration of any redress fund If a representative of
the Commission decides that direct redress to consumers is wholly or
partially impracticable or money remains after redress is completed the
Commission may apply any remaining money for such other equitable relief
(including consumer information remedies) as it determines to be reasonably
related to Defendants practices alleged in the Complaint Any money not
used for such equitable relief is to be deposited to the US Treasury as
disgorgement Defendant has no right to challenge any actions the
Commission or its representatives may take pursuant to this Subsection
IV CUSTOMER INFORMATION
IT IS FURTHER ORDERED that Defendant Defendants officers
agents employees and attorneys and all other persons in active concert
or participation with any of them who receive actual notice of this Order
Page 16 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 16 of 32
acting directly or indirectly are permanently restrained and
enjoined from failing to provide customer information in its possession
custody or control that is sufficient to enable the Commission to efficiently
administer consumer redress including consumer name phone number
address other contact information account number and account balance or
other reasonably available information that the Commission requests to
effectuate consumer redress If a representative of the Commission requests
in writing any such information in Defendants possession custody or
control related to redress Defendant must provide it in the form prescribed
by the Commission within 14 business days
The Parties anticipate that consumers may make inquiries to
Defendant regarding consumer funds subject to this Order Defendant shall
maintain a record of such contacts including consumer contact information
and shall provide such records to the Commission as required in this Section
IV Following receipt of consumer inquiries that should properly be directed
to the Commission rather than Defendant Defendant shall direct the
consumer to contact the FTC at a number and address specified by the FTC
for this purpose
Page 17 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 17 of 32
ORDER ACKNOWLEDGMENTS
IT IS FURTHER ORDERED that Defendant obtains
acknowledgments of receipt of this Order
A Defendant within 7 days of entry of this Order must submit to
the Commission an acknowledgment of receipt of this Order sworn under
penalty of perjury
B For 5 years after entry of this Order Defendant must deliver
a copy of this Order to (I) all principals officers and directors (2) all
employees agents and representatives with authority to approve
advertising or marketing material on behalf of Defendant for any
Prepaid Product and all employees who supervise the formulation of
advertising and marketing material for any Prepaid Product and (3) any
business entity resulting from any change in structure as set forth in the
Section titled Compliance Reporting Delivery must occur within 7 days
of entry of this Order for current personnel For all others delivery must
occur before they assume their responsibilities
C From each individual or entity to which Defendant delivered
a copy of this Order Defendant must obtain within 30 days a signed
and dated acknowledgment of receipt of this Order (an Order
Acknowledgement) Page 18 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 18 of 32
COMPLIANCE REPORTING
IT IS FURTHER ORDERED that Defendant make timely
submissions to the Commission
A One year after entry of this Order Defendant must submit a
compliance report sworn under penalty of perjury Defendant must
1 identify the primary physical postal and email address
and telephone number as designated points of contact which
representatives of the Commission may use to communicate with Defendant
2 identify all of Defendants businesses by all of their
names telephone numbers and physical postal email and Internet
addresses
3 describe the activities of each business including the
goods and services offered and the means of advertising marketing and
sales
4 describe in detail whether and how Defendant is in
compliance with each Section of this Order and
5 provide a copy of each Order Acknowledgment obtained
pursuant to this Order unless previously submitted to the Commission
B For 20 years after entry of this Order Defendant must submit a
compliance notice sworn under penalty of perjury within 14 days of any
Page 19 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 19 of 32
in the following
1 any designated point of contact or
2 the structure of Defendant or any entity that Defendant
has any ownership interest in or controls directly or indirectly that may
affect compliance obligations arising under this Order including creation
merger sale or dissolution of the entity or any subsidiary parent or
affiliate that engages in any acts or practices subject to this Order
C Defendant must submit to the Commission notice of the filing
of any bankruptcy petition insolvency proceeding or similar proceeding by
or against Defendant within 14 days of its filing
D Any submission to the Commission required by this Order to be
sworn under penalty of perjury must be true and accurate and comply with
28 USC sect 1746 such as by concluding I declare under penalty of perjury
under the laws of the United States of America that the foregoing is true
and correct Executed on [date] and supplying the date signatorys full
name title (if applicable) and signature
E Unless otherwise directed by a Commission representative in
writing all submissions to the Commission pursuant to this Order must be
emailed to DEbriefftcgov or sent by overnight courier (not the US Postal
Service) to Associate Director for Enforcement Bureau of Consumer
Page 20 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 20 of 32
Federal Trade Commission 600 Pennsylvania Avenue NW
Washington DC 20580 The subject line must begin FTC v NetSpend
Corporation Xl 70006
VII RECORDKEEPING
IT IS FURTHER ORDERED that Defendant must create certain
records for 20 years after entry of the Order and retain each such record for
5 years Specifically Defendant must create and retain the following
records in connection with the advertisement marketing promotion
offering for sale sale management or servicing of any Prepaid Product
A accounting records showing the revenues from all such goods
or services sold
B personnel records of Defendant showing for each individual
providing services whether as an employee or otherwise that persons
name addresses telephone numbers job title or position dates of service
and (if applicable) the reason for termination
C records of all consumer complaints whether received directly
or indirectly related to access to funds which shall include but not be
limited to available consumer contact information date of complaint
source of complaint category of complaint and the outcome provided that
this Subparagraph shall apply only to consumer complaints related to
Page 21of26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 21 of 32
to funds received directly or indirectly from a consumer a federal or
state agency the Better Business Bureau State Attorneys General as
well as any consumer lawsuit
D all records necessary to demonstrate full compliance with each
provision of this Order including all submissions to the Commission
E a copy of each unique advertisement or other marketing
material created produced or approved by Defendant and
F records of blocks that restrict consumer access to Prepaid
Products requests by consumers to activate and register Prepaid
Products when submitted directly to Defendant or when records of such
requests are available to Defendant requests by consumers to lift blocks
on Prepaid Products requests by consumers for closure of Prepaid Product
accounts and any subsequent disbursements of funds to consumers
consumer notifications of account errors and disbursements of provisional
credits Provided however that to the extent Defendant does not
maintain records as provided in this Subsection in the ordinary course of
business as of the date of this Order and must implement new record
keeping policies systems or procedures to create them Defendant shall
implement such policies systems or procedures within 90 days after the
date of this Order Provided further that Defendant shall not be required
Page 22 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 22 of 32
create or maintain any record identified in this Subsection if Defendant
demonstrates that it is prohibited by banking law or regulation from
creating or maintaining such record
VIII COMPLIANCE MONITORING
IT IS FURTHER ORDERED that for the purpose of monitoring
Defendants compliance with this Order and any failure to transfer any
assets as required by this Order
A Within 14 days of receipt of a written request from a
representative of the Commission Defendant must submit additional
compliance reports or other requested information which must be sworn
under penalty of perjury and appear for depositions and produce
documents for inspection and copying The Commission is also authorized
to obtain discovery without further leave of court using any of the
procedures prescribed by Federal Rules of Civil Procedure 29 30 (including
telephonic depositions) 31 33 34 36 45 and 69
B For matters concerning this Order the Commission is
authorized to communicate directly with Defendant Defendant must
permit representatives of the Commission to interview any employee or
Page 23 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 23 of 32
person affiliated with Defendant who has agreed to such an
interview The person interviewed may have counsel present
C The Commission may use all other lawful means including
posing through its representatives as consumers suppliers or other
individuals or entities to Defendant or any individual or entity affiliated
with Defendant without the necessity of identification or prior notice
Nothing in this Order limits the Commissions lawful use of compulsory
process pursuant to Sections 9 and 20 of the FTC Act 15 USC sectsect 49
57b-l
IX RETENTION OF JURISDICTION
IT IS FURTHER ORDERED that this Court retains jurisdiction of this
matter for purposes of construction modification and enforcement of this
Order
SO ORDERED this ___ day of ____________ _ 2017
Amy Totenberg UNITED STATES DISTRICT JUDGE
Page 24 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 24 of 32
STIPULATED AND AGREED FOR
PLAINTIFF
FEDERAL TRADE COJM11ISSION
Dated jQH~ S ( 2-6 - - -=--=---------------- ------
7
Mark By fe~~
Glassman Adam M Wesolowski Federal Trade Commission 600 Pennsylvania Avenue NW Mailstop CC-10232 Washington DC 20580 Email mglassmanftcgov awesolowskiftcgov Phone (202) 326-2826 (Glassman) (202) 326-3068 (Wesolowski) Fax (202) 326-3768
By 12rdf-d-cgtltd ~ Robin L Rock (Bar No 629532) Federal Trade Commission 225 Peachtree Street NE Suite 1500 Atlanta GA 30303 Email rrockftcgov Phone (404) 656-1368 Fax (404) 656-1379
Attorneys for Plaintiff FEDERAL TRADE COMMISSION
Page 25 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 25 of 32
DE~gSPEND CORPORATION
Diane By~
McCartnev fv~~
- d Vice President Compliance NETSPEND CORPORATION
MORRISON amp FOERSTER LLP
Steven JVI Kaufmann Natalie Fleming ~olen 2000 Pennsylvania Avenue Vv ashington DC 20006 Telephone (212) 468middot8000 Ekfl 11fm ann~mofocom nilemi]1g_g_ol~n(~mofoco1y~
Sarah N Davis 425 Market Street San Francisco California 94105-2482 Telephone (415) 268-7000 Sarah Do yi s(ahn ofo com
By---~-=-~+----=-1i__~___ Michael B Terry Georgia Bar No 702582 BONDURANl MIXSON amp ELMORE LLP 1201 West Peachtree Street NV Suite 3900 Atlanta GA 30309 Email er1middotvbm elaw99nl (404) 881 middot4100
Attorneys for Defendant NetSpend Corporation
Page 26 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 26 of 32
Case 116-cv-04203-AT Document 41 Filed 033117 Page 27 of 32
Appendix A-1
[ON NETSPEND CORPORATION LETTERHEAD]
IMPORTANT NOTICE TO REMOVE NETSPEND CARD MATERIALS TO COMPLY WITH FEDERAL COURT ORDER
[insert addressee name][insert addressee address]
Dear [Third Party]
In response to a settlement with the Federal Trade Commission NetSpend Corporation (NetSpend) has agreed to a court order prohibiting the use of certain claims in marketing and other materials In accordance with this order NetSpend directs that within sixty (60) days of the date of this letter you stop using any existing NetSpend materials that state that NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval Attached hereto are copies photographs or images of sample materials subject to removal NetSpend willmake revised materials available to you shortly if it has not already provided such materials
Should you have any questions about compliance with this notification please contact [insert NetSpend contact person] Further information about the order can be obtained by visiting wwwftcgov and searching for ldquoNetSpendrdquo
Sincerely
[Name][Title]NetSpend Corporation
Case 116-cv-04203-AT Document 41 Filed 033117 Page 28 of 32
Appendix A-2
[ON NETSPEND CORPORATION LETTERHEAD]
IMPORTANT NOTICE TO UPDATE NETSPEND CARD MATERIALS TO COMPLY WITH FEDERAL COURT ORDER
[insert addressee name][insert addressee address]
Dear [Third Party]
In response to a settlement with the Federal Trade Commission NetSpend Corporation (NetSpend) has agreed to a court order prohibiting the use of certain claims in marketing and other materials In accordance with this order NetSpend [as applicable ndash as successor-in-interest to Skylight Financial Inc] directs that you affix corrective stickers to any existing NetSpend materials that state NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval
Enclosed with this letter are corrective stickers stating ldquoYou must meet identity verification requirements to activate and use the cardrdquo These stickers must be placed on the NetSpend materials in close proximity to such statements that NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval If the foregoingstatements are contained within an envelope or package that is already sealed then the sticker shall be placed in a prominent position on the outside of the envelope or package Attached also are copies photographs or images of sample materials illustrating the required correction
Should you have any questions about compliance with this notification please contact [insert NetSpend contact person] Further information about the order can be obtained by visiting wwwftcgov and searching for ldquoNetSpendrdquo
Sincerely
[Name][Title]NetSpend Corporation
Case 116-cv-04203-AT Document 41 Filed 033117 Page 29 of 32
Appendix B
Subject line of e-mail NetSpend [or such other NetSpend brand eg PayPal] Card Refunds Available
You may be eligible for a refund related to your [Branded Name (as applicable)] prepaid card [managed by NetSpend (as necessary where a branded name is used)] Under a settlement with the Federal Trade Commission NetSpend will refund certain customers
If you wish to receive your money via check complete this personalized request form [REQUEST FORM (Link to Personalized Survey per customer) Samplehttpswwwnetspendcomaccountcs surveymid= 1052492523ampsid=601] by ltDate of End of Redress Periodgt
After ltDate of End of Redress Periodgt you will need to contact both the FTC and NetSpend to receive your funds
NetSpend will mail checks within 30 days of receiving a valid request form
If instead of getting a check by filling out the form linked above you would like us to send your refund to an existing NetSpend card please contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 You may be required to submit identification documents to NetSpend to activate your card and access your money
For more information about the program visit wwwftcgovNetSpend If youhave any problems receiving your funds please let the FTC know by emailing NetSpendftcgov
Online Check Request Form
Under the terms of NetSpendrsquos settlement with the Federal Trade Commission [link to wwwftcgovNetSpend] NetSpend will refund certain customers who loaded money on cards
How you would like to receive your money
Case 116-cv-04203-AT Document 41 Filed 033117 Page 30 of 32
_____ Close my account and mail a check to the address on my account
_____ Close my account and mail a check to another address (please enter your new address below)
_____I would like to contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 to receive my funds via a NetSpend card I understand that with this option I may be required to submit identification documents to NetSpend to activate my card and access my money
New Address Street
City
State
Zip
Phone
Finish
Case 116-cv-04203-AT Document 41 Filed 033117 Page 31 of 32
Subject line of mailed letter NetSpend [or applicable NetSpend brand eg PayPal] Card Refunds Available
You may be eligible for a refund related to your [Brand Name (as applicable)] prepaid card [managed by NetSpend (as necessary where a branded name is used)] Under a settlement with the Federal Trade Commission NetSpend willrefund certain customers
If you wish to receive your money via check complete the personalized formbelow by ltDate of End of Redress Periodgt and return it to NetSpend in the enclosed envelope If you received a refund notice from NetSpend by email you may instead go to the personalized request form linked in the email to request your refund
After ltDate of End of Redress Periodgt you will need to contact both the FTC and NetSpend to receive your funds
NetSpend will mail checks within 30 days of receiving a valid request form
For more information about the program visit wwwftcgovNetSpend If youhave any problems receiving your funds please let the FTC know by emailing NetSpendftcgov
Reference Number _________ Name ltFirst Namegt ltLast Namegt Account Address ltStreetgt ltCitygt ltStategt ltZipgt
Check Request
_____ Close my account and mail a check to the address on my account
_____ Close my account and mail a check to another address (please enter your new address below)
Street
City
Case 116-cv-04203-AT Document 41 Filed 033117 Page 32 of 32
State
Zip
Phone
_____I would like to contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 to receive my funds via a NetSpend card I understand that with this option I may be required to submit identification documents to NetSpend to activate my card and access my money
Enclosure Envelope addressed to NetSpend with postage prepaid
of Notice as defined below until 180 days after date of entry of this
Order
B Covered Consumer Account means certain accounts acquired
by consumers between January 1 2010 and August 31 2016 that (1) were
not activated by August 31 2016 (2) were loaded with funds and (3) are not
excluded by reason of fraud prior full refund or credit return of funds to
payment source escheatment of funds or similar reason agreed upon by the
parties Covered Consumer Accounts are identified in a report previously
delivered to the FTC by Defendant
C Defendant means NetSpend Corporation and its subsidiaries
and predecessors including but not limited to Skylight Financial Inc and
their successors and assigns individually collectively or in any
combination
D Prepaid Product means an account used or marketed by
Defendant for personal family or household purposes (1) that is issued
on a prepaid basis in a specified amount or capable of being loaded with
funds thereafter and (2) that is used to conduct transactions for goods or
services or at automated teller machines or to conduct person-to-person
transfers and (3) that is not a checking account share draft account or
negotiable order of withdrawal account Provided however that a product Page 3 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 3 of 32
not be a Prepaid Product if Defendant can demonstrate that the
product is (1) a store gift card (ie a card that is redeemable upon
presentation at a single merchant or an affiliated group of merchants) (2) a
loyalty award or promotional gift card (ie a card issued in connection
with a bona fide loyalty award or promotional program to which funds are
not loaded by a consumer) or (3) a non-reloadable general-use prepaid card
that is both marketed and labeled as a gift card or gift certificate
E Issuing Banks means those financial institutions that issue
Prepaid Products with respect to which Defendant serves as the program
manager
F Parties means both the FTC and NetSpend but no other
individual or entity Notwithstanding anything to the contrary contained
in this Order this Order shall not bind the Issuing Banks
ORDER
I CLAIMS ABOUT ACCESS TO FUNDS AND OTHER MATERIAL INFORMATION
IT IS HEREBY ORDERED that Defendant Defendants officers
agents employees and attorneys and all other persons in active concert or
participation with any of them who receive actual notice of this Order
whether acting directly or indirectly in connection with the advertisement
Page 4 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 4 of 32
promotion offering for sale sale management or servicing of
any Prepaid Product are permanently restrained and enjoined from
expressly or by implication misrepresenting or assisting others in
misrepresenting
A Any fact regarding the length of time or conditions
necessary before (1) Prepaid Products will be ready to use or (2)
consumers will have access to funds
B Any fact regarding the length of time or conditions
necessary to gain approval to use a Prepaid Product including that
consumers are guaranteed approval
C Any fact regarding the protections consumers have in the
event of account errors including the terms under which Defendant
will provide provisional credits except that if Defendant can
demonstrate it made bona fide errors in compliance which were
remedied when identified then such bona fide errors in compliance
shall not constitute violations of this Subsection IC and
D The comparative benefits of Defendants Prepaid Products
to debit card accounts or other payment accounts or payment methods
including that they provide access to funds faster than debit card
accounts or other payment accounts or payment methods
Page 5 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 5 of 32
NOTICE TO THIRD PARTIES TO REMOVE CERTAIN NETSPEND MARKETING MATERIAL
A Except as set forth below in Subsection IIB Defendant shall
deliver as soon as practicable but in no event later than 60 days after entry
of this Order (the Notice Period) an exact copy of the notice attached to
this Order as Appendix A-1 showing the date of mailing to each third-party
necessary to implement the removal of Defendants marketing or advertising
material that does not comply with the standards set forth in this Order and
is still in the stream of commerce (Third Party Material) The Notice
Period and all other deadlines provided for in this Consent Order may be
extended as provided herein or by written stipulation or agreement of the
Parties without further order of the Court The notice required by this
paragraph may include attachments with copies photographs or images of
sample materials subject to removal but shall not include any other
document or enclosures other than those referenced in Appendix A-1 and
may be sent to the principal place of business of each entity Provision of
such notice by Defendant shall constitute sufficient corrective action by
Defendant with respect to Third Party Material covered by the notice
B To the extent that this Order requires Defendant to remove
from the marketplace Third Party Material as defined above in Subsection
Page 6 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 6 of 32
the replacement of which requires additional time for production andor
approval by the Issuing Banks (Production Material) then Defendant shall
deliver as soon as practicable but in no event later than the end of the
Notice Period an exact copy of the notice attached to this Order as Appendix
A-2 and the stickers with corrective text referenced in the notice to each
third-party necessary to implement the placement of the stickers on the
Production Material The text of the stickers shall be of like prominence as
the claims they correct Such notice shall show the date of mailing to each
third party to which Defendant has provided the notice The notice provided
for in this paragraph must include a sufficient quantity of stickers and may
include attachments with copies photographs or images of sample
materials illustrating the required correction but shall not include any other
document or enclosures other than those referenced in Appendix A-2 and
may be sent to the principal place of business of each entity Provision of
such notice and stickers by Defendant shall constitute sufficient corrective
action by Defendant with respect to Production Material covered by the
notice
III MONETARY JUDGMENT
IT IS FURTHER ORDERED that Defendant shall provide monetary
relief totaling no less than fifty-three million dollars ($53000000)
Page 7 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 7 of 32
of balances of forty million dollars ($40000000) on deposit in
customer accounts at Issuing Banks as of August 31 2016 and fees of
thirteen million dollars ($13000000) as follows
A Within the Notice Period Defendant shall provide a notice
substantially similar to the form set forth in Appendix B (the Notice) to all
consumers with a Covered Consumer Account for whom Defendant possesses
sufficient consumer contact information at no cost to the consumer by mail
and email (notwithstanding any prior requests by the consumer to opt out of
email messages from Defendant) and on Defendants webpage All such
Notices shall be sent within sixty (60) days after entry of this Order and
may be sent on a rolling basis during that period Provided however that
Defendant need not provide Notice
1 If Defendant can demonstrate that a Covered Consumer
Account has been activated or refunded in full had access to the funds in full
or becomes subject to the process of escheat before the Notice is required to be
sent for that account
2 If Defendant can demonstrate to the Commission that
providing Notice to a specific consumer is prohibited by law
3 By mail for Covered Consumer Accounts that had an initial
Page 8 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 8 of 32
of less than five dollars ($5) except that such notice shall still be
provided by email
4 If within five (5) business days of the entry of this Order
Defendant has initiated a process to confer with the Internal Revenue Service
(IRS) regarding (a) certain Covered Consumer Accounts with a remaining
balance associated with a tax refund and (b) whether the IRS requests the
return of such tax refund amount If the IRS responds that it does not
request the return of such tax refund amount or to the extent a consumer is
entitled to a refund of amounts in addition to the tax refund amount
Defendant shall send Notice to the consumer within the later of fourteen (14)
days of such response or the conclusion of Notice Period If the IRS requests
the return of such tax refund amounts those funds shall be returned to the
IRS
B Within thirty (30) days of the request by a consumer with a
Covered Consumer Account that is made within the Consumer Redress
Period Defendant shall send the consumer a refund check by first class US
Mail postage prepaid unless a consumer requests to receive their funds via
another method made available by Defendant and the consumer completes
any necessary identity verification and activation processes within fourteen
Page 9of26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 9 of 32
days of such request Refund checks and amounts made available via
other options shall include such Covered Consumer Account balance and fees
charged to the consumer before activation of an account that have not
already been credited All payments to consumers hereunder shall be subject
to reasonable and appropriate fraud prevention procedures and NetSpend
may decline a consumer refund request if it has credible evidence that the
request is fraudulent or duplicative For any consumer who attempts to
assert a claim to an account as to which a claim has already has been
submitted Defendant shall direct the consumer to contact the FTC to seek
any redress
C Within 30 days after the conclusion of the Consumer Redress
Period (the Fee Payment Date) Defendant shall
1 Pay to the Commission thirteen million dollars
($13000000) reflecting fees charged by Defendant (the Fee Payment
Amount) provided however that the Fee Payment Amount shall be reduced
by the amount of any fees charged as of August 31 2016 that NetSpend
subsequent to that date (a) refunded to a consumer with a Covered Consumer
Account (b) credited to activated Covered Consumer Accounts or (c) returned
to the IRS as provided above A refund shall be deemed to have occurred on
Page 10 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 10 of 32
date when a check that includes the funds is mailed or a consumer is
granted access to the funds on the consumers account Payment to the
Commission must be made by electronic fund transfer in accordance with
instructions provided by a representative of the Commission To the extent
that the foregoing reductions exceed $13000000 then additional reductions
shall be applied to the amounts to be paid to the Commission pursuant to
Subsections IIID and E
2 Provide to counsel for the Commission a sworn written
report that details (a) the disposition by account of all funds made available
or refunded to Covered Consumer Accounts (b) all claims denied with respect
to Covered Consumer Accounts because of fraud or duplication (c) funds
submitted to the IRS and (d) all funds included in the Fee Payment Amount
including any reductions thereof
D On the Fee Payment Date Defendant shall also
1 Pay to the Commission an amount comprised of (a) fees
charged if any including account maintenance fees (also referred to as
account inactivity fees) and monthly or annual plan fees to a Covered
Consumer Account between September 1 2016 and the conclusion of the
Consumer Redress Period that were not (i) refunded (ii) credited to an
Page 11of26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 11 of 32
Covered Consumer Account or otherwise made available to the
consumer (iii) returned to the IRS or (iv) charged after funds were made
available by activation of a Covered Consumer Account at the request of the
consumer in which case such fees described in clause (i) - (iv) above shall be
deemed to be funds disposed of for purposes of this Order including
Subsection IIIF and (b) any sums retained by Defendant related to a
Covered Consumer Account after the conclusion of the escheatment period
applicable to the account
2 Provide to counsel for the Commission a sworn written
report that details the disposition by account of (a) all funds paid to the
Commission under Subsection IIIDl and (b) all Covered Consumer
Accounts that were activated or closed between September 1 2016 and the
conclusion of the Consumer Redress Period
E Beginning six months after the conclusion of the Consumer
Redress Period and every six months thereafter (the Six Month
Adjustment Dates) until all funds on deposit in Covered Consumer
Accounts as of the conclusion of the Consumer Redress Period are
distributed pursuant to the following adjustments or reductions (i) funds in
Covered Consumer Accounts are refunded held in activated accounts or
Page 12 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 12 of 32
made available to consumers (ii) funds in Covered Consumer
Accounts are paid to the FTC (iii) funds in Covered Consumer Accounts are
returned to the IRS (iv) funds in Covered Consumer Accounts are paid or
returned to any other party with a bona fide claim to such funds or (v) funds
in Covered Consumer Accounts are subject to initiation of the process of
escheat (the Covered Consumer Account Adjustments) Defendant shall
sixty (60) days after each Six Month Adjustment Date (the Six Month
Payment Date)
1 Pay to the Commission an amount comprised of (a) fees
charged if any including account maintenance fees (also referred to as
account inactivity fees) and monthly or annual plan fees to a Covered
Consumer Account during that six month period that were not (i) refunded
(ii) credited to an activated Covered Consumer Account or otherwise made
available to the consumer (iii) returned to the IRS or (iv) charged after funds
were made available by activation of a Covered Consumer Account at the
request of the consumer in which case such fees described in clauses (i) middot (iv)
above shall be deemed to be funds disposed of for purposes of this Order
including Subsection IIIF and (b) any sums retained by Defendant related to
a Covered Consumer Account after the conclusion of the escheatment period
Page 13 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 13 of 32
to the account The total sum of all of the payments on the Six
Month Payment Dates shall not exceed the amount of funds on deposit in
Covered Consumer Accounts as of the conclusion of the Consumer Redress
Period and each individual payment on a Six Month Payment Date shall not
exceed the amount of funds on deposit in Covered Consumer Accounts as of
the prior Six Month Adjustment Date after applying the Covered Consumer
Account Adjustments
2 Provide to counsel for the Commission a sworn written
report that details the disposition of the following by account (a) all funds
paid to the Commission under Subsection IIIE L (b) all Covered Consumer
Accounts that were activated or closed during that six month period (c) all
Covered Consumer Account Adjustments and (d) all funds that remain on
deposit in Covered Consumer Accounts after application of the Covered
Consumer Adjustments
F To the extent that any funds included in the monetary relief
identified in this Section that totals no less than fifty-three million dollars
($53000000) are not disposed of by operation of Subsections IIIA -IIIE
Defendant shall pay the amount not disposed of by operation of Subsections
IIIA -IIIE to the Commission sixty days after the last Six Month Payment
Page 14 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 14 of 32
G Defendant relinquishes dominion and all legal and equitable
right title and interest in all assets transferred to the FTC the IRS
consumers or any third-party pursuant to this Order and may not seek the
return of any assets
H The facts alleged in the Complaint will be taken as true
without further proof in any subsequent civil litigation by or on behalf of
the Commission to enforce its rights to any payment or monetary judgment
pursuant to this Order such as a claim of nondischargeability in any
bankruptcy case
I The facts alleged in the Complaint establish all elements
necessary to sustain an action by the Commission pursuant to Section
523(a)(2)(A) of the Bankruptcy Code 11 USC sect 523(a)(2)(A) and this
Order will have collateral estoppel effect for such purposes
J Defendants admissions in Subsections IIIHand IIII above are
not intended to be nor shall they be construed as admissions with respect to
any claim by any third party
K Defendant acknowledges that its Taxpayer Identification
Numbers (Social Security Numbers or Employer Identification Numbers)
Page 15 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 15 of 32
Defendant must submit to the Commission may be used for
collecting and reporting on any delinquent amount arising out of this Order
in accordance with 31 USC sect7701
L All money paid to the Commission pursuant to this Order may be
deposited into a fund administered by the Commission or its designee to be
used for equitable relief including consumer redress and any attendant
expenses for the administration of any redress fund If a representative of
the Commission decides that direct redress to consumers is wholly or
partially impracticable or money remains after redress is completed the
Commission may apply any remaining money for such other equitable relief
(including consumer information remedies) as it determines to be reasonably
related to Defendants practices alleged in the Complaint Any money not
used for such equitable relief is to be deposited to the US Treasury as
disgorgement Defendant has no right to challenge any actions the
Commission or its representatives may take pursuant to this Subsection
IV CUSTOMER INFORMATION
IT IS FURTHER ORDERED that Defendant Defendants officers
agents employees and attorneys and all other persons in active concert
or participation with any of them who receive actual notice of this Order
Page 16 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 16 of 32
acting directly or indirectly are permanently restrained and
enjoined from failing to provide customer information in its possession
custody or control that is sufficient to enable the Commission to efficiently
administer consumer redress including consumer name phone number
address other contact information account number and account balance or
other reasonably available information that the Commission requests to
effectuate consumer redress If a representative of the Commission requests
in writing any such information in Defendants possession custody or
control related to redress Defendant must provide it in the form prescribed
by the Commission within 14 business days
The Parties anticipate that consumers may make inquiries to
Defendant regarding consumer funds subject to this Order Defendant shall
maintain a record of such contacts including consumer contact information
and shall provide such records to the Commission as required in this Section
IV Following receipt of consumer inquiries that should properly be directed
to the Commission rather than Defendant Defendant shall direct the
consumer to contact the FTC at a number and address specified by the FTC
for this purpose
Page 17 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 17 of 32
ORDER ACKNOWLEDGMENTS
IT IS FURTHER ORDERED that Defendant obtains
acknowledgments of receipt of this Order
A Defendant within 7 days of entry of this Order must submit to
the Commission an acknowledgment of receipt of this Order sworn under
penalty of perjury
B For 5 years after entry of this Order Defendant must deliver
a copy of this Order to (I) all principals officers and directors (2) all
employees agents and representatives with authority to approve
advertising or marketing material on behalf of Defendant for any
Prepaid Product and all employees who supervise the formulation of
advertising and marketing material for any Prepaid Product and (3) any
business entity resulting from any change in structure as set forth in the
Section titled Compliance Reporting Delivery must occur within 7 days
of entry of this Order for current personnel For all others delivery must
occur before they assume their responsibilities
C From each individual or entity to which Defendant delivered
a copy of this Order Defendant must obtain within 30 days a signed
and dated acknowledgment of receipt of this Order (an Order
Acknowledgement) Page 18 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 18 of 32
COMPLIANCE REPORTING
IT IS FURTHER ORDERED that Defendant make timely
submissions to the Commission
A One year after entry of this Order Defendant must submit a
compliance report sworn under penalty of perjury Defendant must
1 identify the primary physical postal and email address
and telephone number as designated points of contact which
representatives of the Commission may use to communicate with Defendant
2 identify all of Defendants businesses by all of their
names telephone numbers and physical postal email and Internet
addresses
3 describe the activities of each business including the
goods and services offered and the means of advertising marketing and
sales
4 describe in detail whether and how Defendant is in
compliance with each Section of this Order and
5 provide a copy of each Order Acknowledgment obtained
pursuant to this Order unless previously submitted to the Commission
B For 20 years after entry of this Order Defendant must submit a
compliance notice sworn under penalty of perjury within 14 days of any
Page 19 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 19 of 32
in the following
1 any designated point of contact or
2 the structure of Defendant or any entity that Defendant
has any ownership interest in or controls directly or indirectly that may
affect compliance obligations arising under this Order including creation
merger sale or dissolution of the entity or any subsidiary parent or
affiliate that engages in any acts or practices subject to this Order
C Defendant must submit to the Commission notice of the filing
of any bankruptcy petition insolvency proceeding or similar proceeding by
or against Defendant within 14 days of its filing
D Any submission to the Commission required by this Order to be
sworn under penalty of perjury must be true and accurate and comply with
28 USC sect 1746 such as by concluding I declare under penalty of perjury
under the laws of the United States of America that the foregoing is true
and correct Executed on [date] and supplying the date signatorys full
name title (if applicable) and signature
E Unless otherwise directed by a Commission representative in
writing all submissions to the Commission pursuant to this Order must be
emailed to DEbriefftcgov or sent by overnight courier (not the US Postal
Service) to Associate Director for Enforcement Bureau of Consumer
Page 20 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 20 of 32
Federal Trade Commission 600 Pennsylvania Avenue NW
Washington DC 20580 The subject line must begin FTC v NetSpend
Corporation Xl 70006
VII RECORDKEEPING
IT IS FURTHER ORDERED that Defendant must create certain
records for 20 years after entry of the Order and retain each such record for
5 years Specifically Defendant must create and retain the following
records in connection with the advertisement marketing promotion
offering for sale sale management or servicing of any Prepaid Product
A accounting records showing the revenues from all such goods
or services sold
B personnel records of Defendant showing for each individual
providing services whether as an employee or otherwise that persons
name addresses telephone numbers job title or position dates of service
and (if applicable) the reason for termination
C records of all consumer complaints whether received directly
or indirectly related to access to funds which shall include but not be
limited to available consumer contact information date of complaint
source of complaint category of complaint and the outcome provided that
this Subparagraph shall apply only to consumer complaints related to
Page 21of26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 21 of 32
to funds received directly or indirectly from a consumer a federal or
state agency the Better Business Bureau State Attorneys General as
well as any consumer lawsuit
D all records necessary to demonstrate full compliance with each
provision of this Order including all submissions to the Commission
E a copy of each unique advertisement or other marketing
material created produced or approved by Defendant and
F records of blocks that restrict consumer access to Prepaid
Products requests by consumers to activate and register Prepaid
Products when submitted directly to Defendant or when records of such
requests are available to Defendant requests by consumers to lift blocks
on Prepaid Products requests by consumers for closure of Prepaid Product
accounts and any subsequent disbursements of funds to consumers
consumer notifications of account errors and disbursements of provisional
credits Provided however that to the extent Defendant does not
maintain records as provided in this Subsection in the ordinary course of
business as of the date of this Order and must implement new record
keeping policies systems or procedures to create them Defendant shall
implement such policies systems or procedures within 90 days after the
date of this Order Provided further that Defendant shall not be required
Page 22 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 22 of 32
create or maintain any record identified in this Subsection if Defendant
demonstrates that it is prohibited by banking law or regulation from
creating or maintaining such record
VIII COMPLIANCE MONITORING
IT IS FURTHER ORDERED that for the purpose of monitoring
Defendants compliance with this Order and any failure to transfer any
assets as required by this Order
A Within 14 days of receipt of a written request from a
representative of the Commission Defendant must submit additional
compliance reports or other requested information which must be sworn
under penalty of perjury and appear for depositions and produce
documents for inspection and copying The Commission is also authorized
to obtain discovery without further leave of court using any of the
procedures prescribed by Federal Rules of Civil Procedure 29 30 (including
telephonic depositions) 31 33 34 36 45 and 69
B For matters concerning this Order the Commission is
authorized to communicate directly with Defendant Defendant must
permit representatives of the Commission to interview any employee or
Page 23 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 23 of 32
person affiliated with Defendant who has agreed to such an
interview The person interviewed may have counsel present
C The Commission may use all other lawful means including
posing through its representatives as consumers suppliers or other
individuals or entities to Defendant or any individual or entity affiliated
with Defendant without the necessity of identification or prior notice
Nothing in this Order limits the Commissions lawful use of compulsory
process pursuant to Sections 9 and 20 of the FTC Act 15 USC sectsect 49
57b-l
IX RETENTION OF JURISDICTION
IT IS FURTHER ORDERED that this Court retains jurisdiction of this
matter for purposes of construction modification and enforcement of this
Order
SO ORDERED this ___ day of ____________ _ 2017
Amy Totenberg UNITED STATES DISTRICT JUDGE
Page 24 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 24 of 32
STIPULATED AND AGREED FOR
PLAINTIFF
FEDERAL TRADE COJM11ISSION
Dated jQH~ S ( 2-6 - - -=--=---------------- ------
7
Mark By fe~~
Glassman Adam M Wesolowski Federal Trade Commission 600 Pennsylvania Avenue NW Mailstop CC-10232 Washington DC 20580 Email mglassmanftcgov awesolowskiftcgov Phone (202) 326-2826 (Glassman) (202) 326-3068 (Wesolowski) Fax (202) 326-3768
By 12rdf-d-cgtltd ~ Robin L Rock (Bar No 629532) Federal Trade Commission 225 Peachtree Street NE Suite 1500 Atlanta GA 30303 Email rrockftcgov Phone (404) 656-1368 Fax (404) 656-1379
Attorneys for Plaintiff FEDERAL TRADE COMMISSION
Page 25 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 25 of 32
DE~gSPEND CORPORATION
Diane By~
McCartnev fv~~
- d Vice President Compliance NETSPEND CORPORATION
MORRISON amp FOERSTER LLP
Steven JVI Kaufmann Natalie Fleming ~olen 2000 Pennsylvania Avenue Vv ashington DC 20006 Telephone (212) 468middot8000 Ekfl 11fm ann~mofocom nilemi]1g_g_ol~n(~mofoco1y~
Sarah N Davis 425 Market Street San Francisco California 94105-2482 Telephone (415) 268-7000 Sarah Do yi s(ahn ofo com
By---~-=-~+----=-1i__~___ Michael B Terry Georgia Bar No 702582 BONDURANl MIXSON amp ELMORE LLP 1201 West Peachtree Street NV Suite 3900 Atlanta GA 30309 Email er1middotvbm elaw99nl (404) 881 middot4100
Attorneys for Defendant NetSpend Corporation
Page 26 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 26 of 32
Case 116-cv-04203-AT Document 41 Filed 033117 Page 27 of 32
Appendix A-1
[ON NETSPEND CORPORATION LETTERHEAD]
IMPORTANT NOTICE TO REMOVE NETSPEND CARD MATERIALS TO COMPLY WITH FEDERAL COURT ORDER
[insert addressee name][insert addressee address]
Dear [Third Party]
In response to a settlement with the Federal Trade Commission NetSpend Corporation (NetSpend) has agreed to a court order prohibiting the use of certain claims in marketing and other materials In accordance with this order NetSpend directs that within sixty (60) days of the date of this letter you stop using any existing NetSpend materials that state that NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval Attached hereto are copies photographs or images of sample materials subject to removal NetSpend willmake revised materials available to you shortly if it has not already provided such materials
Should you have any questions about compliance with this notification please contact [insert NetSpend contact person] Further information about the order can be obtained by visiting wwwftcgov and searching for ldquoNetSpendrdquo
Sincerely
[Name][Title]NetSpend Corporation
Case 116-cv-04203-AT Document 41 Filed 033117 Page 28 of 32
Appendix A-2
[ON NETSPEND CORPORATION LETTERHEAD]
IMPORTANT NOTICE TO UPDATE NETSPEND CARD MATERIALS TO COMPLY WITH FEDERAL COURT ORDER
[insert addressee name][insert addressee address]
Dear [Third Party]
In response to a settlement with the Federal Trade Commission NetSpend Corporation (NetSpend) has agreed to a court order prohibiting the use of certain claims in marketing and other materials In accordance with this order NetSpend [as applicable ndash as successor-in-interest to Skylight Financial Inc] directs that you affix corrective stickers to any existing NetSpend materials that state NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval
Enclosed with this letter are corrective stickers stating ldquoYou must meet identity verification requirements to activate and use the cardrdquo These stickers must be placed on the NetSpend materials in close proximity to such statements that NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval If the foregoingstatements are contained within an envelope or package that is already sealed then the sticker shall be placed in a prominent position on the outside of the envelope or package Attached also are copies photographs or images of sample materials illustrating the required correction
Should you have any questions about compliance with this notification please contact [insert NetSpend contact person] Further information about the order can be obtained by visiting wwwftcgov and searching for ldquoNetSpendrdquo
Sincerely
[Name][Title]NetSpend Corporation
Case 116-cv-04203-AT Document 41 Filed 033117 Page 29 of 32
Appendix B
Subject line of e-mail NetSpend [or such other NetSpend brand eg PayPal] Card Refunds Available
You may be eligible for a refund related to your [Branded Name (as applicable)] prepaid card [managed by NetSpend (as necessary where a branded name is used)] Under a settlement with the Federal Trade Commission NetSpend will refund certain customers
If you wish to receive your money via check complete this personalized request form [REQUEST FORM (Link to Personalized Survey per customer) Samplehttpswwwnetspendcomaccountcs surveymid= 1052492523ampsid=601] by ltDate of End of Redress Periodgt
After ltDate of End of Redress Periodgt you will need to contact both the FTC and NetSpend to receive your funds
NetSpend will mail checks within 30 days of receiving a valid request form
If instead of getting a check by filling out the form linked above you would like us to send your refund to an existing NetSpend card please contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 You may be required to submit identification documents to NetSpend to activate your card and access your money
For more information about the program visit wwwftcgovNetSpend If youhave any problems receiving your funds please let the FTC know by emailing NetSpendftcgov
Online Check Request Form
Under the terms of NetSpendrsquos settlement with the Federal Trade Commission [link to wwwftcgovNetSpend] NetSpend will refund certain customers who loaded money on cards
How you would like to receive your money
Case 116-cv-04203-AT Document 41 Filed 033117 Page 30 of 32
_____ Close my account and mail a check to the address on my account
_____ Close my account and mail a check to another address (please enter your new address below)
_____I would like to contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 to receive my funds via a NetSpend card I understand that with this option I may be required to submit identification documents to NetSpend to activate my card and access my money
New Address Street
City
State
Zip
Phone
Finish
Case 116-cv-04203-AT Document 41 Filed 033117 Page 31 of 32
Subject line of mailed letter NetSpend [or applicable NetSpend brand eg PayPal] Card Refunds Available
You may be eligible for a refund related to your [Brand Name (as applicable)] prepaid card [managed by NetSpend (as necessary where a branded name is used)] Under a settlement with the Federal Trade Commission NetSpend willrefund certain customers
If you wish to receive your money via check complete the personalized formbelow by ltDate of End of Redress Periodgt and return it to NetSpend in the enclosed envelope If you received a refund notice from NetSpend by email you may instead go to the personalized request form linked in the email to request your refund
After ltDate of End of Redress Periodgt you will need to contact both the FTC and NetSpend to receive your funds
NetSpend will mail checks within 30 days of receiving a valid request form
For more information about the program visit wwwftcgovNetSpend If youhave any problems receiving your funds please let the FTC know by emailing NetSpendftcgov
Reference Number _________ Name ltFirst Namegt ltLast Namegt Account Address ltStreetgt ltCitygt ltStategt ltZipgt
Check Request
_____ Close my account and mail a check to the address on my account
_____ Close my account and mail a check to another address (please enter your new address below)
Street
City
Case 116-cv-04203-AT Document 41 Filed 033117 Page 32 of 32
State
Zip
Phone
_____I would like to contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 to receive my funds via a NetSpend card I understand that with this option I may be required to submit identification documents to NetSpend to activate my card and access my money
Enclosure Envelope addressed to NetSpend with postage prepaid
not be a Prepaid Product if Defendant can demonstrate that the
product is (1) a store gift card (ie a card that is redeemable upon
presentation at a single merchant or an affiliated group of merchants) (2) a
loyalty award or promotional gift card (ie a card issued in connection
with a bona fide loyalty award or promotional program to which funds are
not loaded by a consumer) or (3) a non-reloadable general-use prepaid card
that is both marketed and labeled as a gift card or gift certificate
E Issuing Banks means those financial institutions that issue
Prepaid Products with respect to which Defendant serves as the program
manager
F Parties means both the FTC and NetSpend but no other
individual or entity Notwithstanding anything to the contrary contained
in this Order this Order shall not bind the Issuing Banks
ORDER
I CLAIMS ABOUT ACCESS TO FUNDS AND OTHER MATERIAL INFORMATION
IT IS HEREBY ORDERED that Defendant Defendants officers
agents employees and attorneys and all other persons in active concert or
participation with any of them who receive actual notice of this Order
whether acting directly or indirectly in connection with the advertisement
Page 4 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 4 of 32
promotion offering for sale sale management or servicing of
any Prepaid Product are permanently restrained and enjoined from
expressly or by implication misrepresenting or assisting others in
misrepresenting
A Any fact regarding the length of time or conditions
necessary before (1) Prepaid Products will be ready to use or (2)
consumers will have access to funds
B Any fact regarding the length of time or conditions
necessary to gain approval to use a Prepaid Product including that
consumers are guaranteed approval
C Any fact regarding the protections consumers have in the
event of account errors including the terms under which Defendant
will provide provisional credits except that if Defendant can
demonstrate it made bona fide errors in compliance which were
remedied when identified then such bona fide errors in compliance
shall not constitute violations of this Subsection IC and
D The comparative benefits of Defendants Prepaid Products
to debit card accounts or other payment accounts or payment methods
including that they provide access to funds faster than debit card
accounts or other payment accounts or payment methods
Page 5 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 5 of 32
NOTICE TO THIRD PARTIES TO REMOVE CERTAIN NETSPEND MARKETING MATERIAL
A Except as set forth below in Subsection IIB Defendant shall
deliver as soon as practicable but in no event later than 60 days after entry
of this Order (the Notice Period) an exact copy of the notice attached to
this Order as Appendix A-1 showing the date of mailing to each third-party
necessary to implement the removal of Defendants marketing or advertising
material that does not comply with the standards set forth in this Order and
is still in the stream of commerce (Third Party Material) The Notice
Period and all other deadlines provided for in this Consent Order may be
extended as provided herein or by written stipulation or agreement of the
Parties without further order of the Court The notice required by this
paragraph may include attachments with copies photographs or images of
sample materials subject to removal but shall not include any other
document or enclosures other than those referenced in Appendix A-1 and
may be sent to the principal place of business of each entity Provision of
such notice by Defendant shall constitute sufficient corrective action by
Defendant with respect to Third Party Material covered by the notice
B To the extent that this Order requires Defendant to remove
from the marketplace Third Party Material as defined above in Subsection
Page 6 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 6 of 32
the replacement of which requires additional time for production andor
approval by the Issuing Banks (Production Material) then Defendant shall
deliver as soon as practicable but in no event later than the end of the
Notice Period an exact copy of the notice attached to this Order as Appendix
A-2 and the stickers with corrective text referenced in the notice to each
third-party necessary to implement the placement of the stickers on the
Production Material The text of the stickers shall be of like prominence as
the claims they correct Such notice shall show the date of mailing to each
third party to which Defendant has provided the notice The notice provided
for in this paragraph must include a sufficient quantity of stickers and may
include attachments with copies photographs or images of sample
materials illustrating the required correction but shall not include any other
document or enclosures other than those referenced in Appendix A-2 and
may be sent to the principal place of business of each entity Provision of
such notice and stickers by Defendant shall constitute sufficient corrective
action by Defendant with respect to Production Material covered by the
notice
III MONETARY JUDGMENT
IT IS FURTHER ORDERED that Defendant shall provide monetary
relief totaling no less than fifty-three million dollars ($53000000)
Page 7 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 7 of 32
of balances of forty million dollars ($40000000) on deposit in
customer accounts at Issuing Banks as of August 31 2016 and fees of
thirteen million dollars ($13000000) as follows
A Within the Notice Period Defendant shall provide a notice
substantially similar to the form set forth in Appendix B (the Notice) to all
consumers with a Covered Consumer Account for whom Defendant possesses
sufficient consumer contact information at no cost to the consumer by mail
and email (notwithstanding any prior requests by the consumer to opt out of
email messages from Defendant) and on Defendants webpage All such
Notices shall be sent within sixty (60) days after entry of this Order and
may be sent on a rolling basis during that period Provided however that
Defendant need not provide Notice
1 If Defendant can demonstrate that a Covered Consumer
Account has been activated or refunded in full had access to the funds in full
or becomes subject to the process of escheat before the Notice is required to be
sent for that account
2 If Defendant can demonstrate to the Commission that
providing Notice to a specific consumer is prohibited by law
3 By mail for Covered Consumer Accounts that had an initial
Page 8 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 8 of 32
of less than five dollars ($5) except that such notice shall still be
provided by email
4 If within five (5) business days of the entry of this Order
Defendant has initiated a process to confer with the Internal Revenue Service
(IRS) regarding (a) certain Covered Consumer Accounts with a remaining
balance associated with a tax refund and (b) whether the IRS requests the
return of such tax refund amount If the IRS responds that it does not
request the return of such tax refund amount or to the extent a consumer is
entitled to a refund of amounts in addition to the tax refund amount
Defendant shall send Notice to the consumer within the later of fourteen (14)
days of such response or the conclusion of Notice Period If the IRS requests
the return of such tax refund amounts those funds shall be returned to the
IRS
B Within thirty (30) days of the request by a consumer with a
Covered Consumer Account that is made within the Consumer Redress
Period Defendant shall send the consumer a refund check by first class US
Mail postage prepaid unless a consumer requests to receive their funds via
another method made available by Defendant and the consumer completes
any necessary identity verification and activation processes within fourteen
Page 9of26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 9 of 32
days of such request Refund checks and amounts made available via
other options shall include such Covered Consumer Account balance and fees
charged to the consumer before activation of an account that have not
already been credited All payments to consumers hereunder shall be subject
to reasonable and appropriate fraud prevention procedures and NetSpend
may decline a consumer refund request if it has credible evidence that the
request is fraudulent or duplicative For any consumer who attempts to
assert a claim to an account as to which a claim has already has been
submitted Defendant shall direct the consumer to contact the FTC to seek
any redress
C Within 30 days after the conclusion of the Consumer Redress
Period (the Fee Payment Date) Defendant shall
1 Pay to the Commission thirteen million dollars
($13000000) reflecting fees charged by Defendant (the Fee Payment
Amount) provided however that the Fee Payment Amount shall be reduced
by the amount of any fees charged as of August 31 2016 that NetSpend
subsequent to that date (a) refunded to a consumer with a Covered Consumer
Account (b) credited to activated Covered Consumer Accounts or (c) returned
to the IRS as provided above A refund shall be deemed to have occurred on
Page 10 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 10 of 32
date when a check that includes the funds is mailed or a consumer is
granted access to the funds on the consumers account Payment to the
Commission must be made by electronic fund transfer in accordance with
instructions provided by a representative of the Commission To the extent
that the foregoing reductions exceed $13000000 then additional reductions
shall be applied to the amounts to be paid to the Commission pursuant to
Subsections IIID and E
2 Provide to counsel for the Commission a sworn written
report that details (a) the disposition by account of all funds made available
or refunded to Covered Consumer Accounts (b) all claims denied with respect
to Covered Consumer Accounts because of fraud or duplication (c) funds
submitted to the IRS and (d) all funds included in the Fee Payment Amount
including any reductions thereof
D On the Fee Payment Date Defendant shall also
1 Pay to the Commission an amount comprised of (a) fees
charged if any including account maintenance fees (also referred to as
account inactivity fees) and monthly or annual plan fees to a Covered
Consumer Account between September 1 2016 and the conclusion of the
Consumer Redress Period that were not (i) refunded (ii) credited to an
Page 11of26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 11 of 32
Covered Consumer Account or otherwise made available to the
consumer (iii) returned to the IRS or (iv) charged after funds were made
available by activation of a Covered Consumer Account at the request of the
consumer in which case such fees described in clause (i) - (iv) above shall be
deemed to be funds disposed of for purposes of this Order including
Subsection IIIF and (b) any sums retained by Defendant related to a
Covered Consumer Account after the conclusion of the escheatment period
applicable to the account
2 Provide to counsel for the Commission a sworn written
report that details the disposition by account of (a) all funds paid to the
Commission under Subsection IIIDl and (b) all Covered Consumer
Accounts that were activated or closed between September 1 2016 and the
conclusion of the Consumer Redress Period
E Beginning six months after the conclusion of the Consumer
Redress Period and every six months thereafter (the Six Month
Adjustment Dates) until all funds on deposit in Covered Consumer
Accounts as of the conclusion of the Consumer Redress Period are
distributed pursuant to the following adjustments or reductions (i) funds in
Covered Consumer Accounts are refunded held in activated accounts or
Page 12 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 12 of 32
made available to consumers (ii) funds in Covered Consumer
Accounts are paid to the FTC (iii) funds in Covered Consumer Accounts are
returned to the IRS (iv) funds in Covered Consumer Accounts are paid or
returned to any other party with a bona fide claim to such funds or (v) funds
in Covered Consumer Accounts are subject to initiation of the process of
escheat (the Covered Consumer Account Adjustments) Defendant shall
sixty (60) days after each Six Month Adjustment Date (the Six Month
Payment Date)
1 Pay to the Commission an amount comprised of (a) fees
charged if any including account maintenance fees (also referred to as
account inactivity fees) and monthly or annual plan fees to a Covered
Consumer Account during that six month period that were not (i) refunded
(ii) credited to an activated Covered Consumer Account or otherwise made
available to the consumer (iii) returned to the IRS or (iv) charged after funds
were made available by activation of a Covered Consumer Account at the
request of the consumer in which case such fees described in clauses (i) middot (iv)
above shall be deemed to be funds disposed of for purposes of this Order
including Subsection IIIF and (b) any sums retained by Defendant related to
a Covered Consumer Account after the conclusion of the escheatment period
Page 13 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 13 of 32
to the account The total sum of all of the payments on the Six
Month Payment Dates shall not exceed the amount of funds on deposit in
Covered Consumer Accounts as of the conclusion of the Consumer Redress
Period and each individual payment on a Six Month Payment Date shall not
exceed the amount of funds on deposit in Covered Consumer Accounts as of
the prior Six Month Adjustment Date after applying the Covered Consumer
Account Adjustments
2 Provide to counsel for the Commission a sworn written
report that details the disposition of the following by account (a) all funds
paid to the Commission under Subsection IIIE L (b) all Covered Consumer
Accounts that were activated or closed during that six month period (c) all
Covered Consumer Account Adjustments and (d) all funds that remain on
deposit in Covered Consumer Accounts after application of the Covered
Consumer Adjustments
F To the extent that any funds included in the monetary relief
identified in this Section that totals no less than fifty-three million dollars
($53000000) are not disposed of by operation of Subsections IIIA -IIIE
Defendant shall pay the amount not disposed of by operation of Subsections
IIIA -IIIE to the Commission sixty days after the last Six Month Payment
Page 14 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 14 of 32
G Defendant relinquishes dominion and all legal and equitable
right title and interest in all assets transferred to the FTC the IRS
consumers or any third-party pursuant to this Order and may not seek the
return of any assets
H The facts alleged in the Complaint will be taken as true
without further proof in any subsequent civil litigation by or on behalf of
the Commission to enforce its rights to any payment or monetary judgment
pursuant to this Order such as a claim of nondischargeability in any
bankruptcy case
I The facts alleged in the Complaint establish all elements
necessary to sustain an action by the Commission pursuant to Section
523(a)(2)(A) of the Bankruptcy Code 11 USC sect 523(a)(2)(A) and this
Order will have collateral estoppel effect for such purposes
J Defendants admissions in Subsections IIIHand IIII above are
not intended to be nor shall they be construed as admissions with respect to
any claim by any third party
K Defendant acknowledges that its Taxpayer Identification
Numbers (Social Security Numbers or Employer Identification Numbers)
Page 15 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 15 of 32
Defendant must submit to the Commission may be used for
collecting and reporting on any delinquent amount arising out of this Order
in accordance with 31 USC sect7701
L All money paid to the Commission pursuant to this Order may be
deposited into a fund administered by the Commission or its designee to be
used for equitable relief including consumer redress and any attendant
expenses for the administration of any redress fund If a representative of
the Commission decides that direct redress to consumers is wholly or
partially impracticable or money remains after redress is completed the
Commission may apply any remaining money for such other equitable relief
(including consumer information remedies) as it determines to be reasonably
related to Defendants practices alleged in the Complaint Any money not
used for such equitable relief is to be deposited to the US Treasury as
disgorgement Defendant has no right to challenge any actions the
Commission or its representatives may take pursuant to this Subsection
IV CUSTOMER INFORMATION
IT IS FURTHER ORDERED that Defendant Defendants officers
agents employees and attorneys and all other persons in active concert
or participation with any of them who receive actual notice of this Order
Page 16 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 16 of 32
acting directly or indirectly are permanently restrained and
enjoined from failing to provide customer information in its possession
custody or control that is sufficient to enable the Commission to efficiently
administer consumer redress including consumer name phone number
address other contact information account number and account balance or
other reasonably available information that the Commission requests to
effectuate consumer redress If a representative of the Commission requests
in writing any such information in Defendants possession custody or
control related to redress Defendant must provide it in the form prescribed
by the Commission within 14 business days
The Parties anticipate that consumers may make inquiries to
Defendant regarding consumer funds subject to this Order Defendant shall
maintain a record of such contacts including consumer contact information
and shall provide such records to the Commission as required in this Section
IV Following receipt of consumer inquiries that should properly be directed
to the Commission rather than Defendant Defendant shall direct the
consumer to contact the FTC at a number and address specified by the FTC
for this purpose
Page 17 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 17 of 32
ORDER ACKNOWLEDGMENTS
IT IS FURTHER ORDERED that Defendant obtains
acknowledgments of receipt of this Order
A Defendant within 7 days of entry of this Order must submit to
the Commission an acknowledgment of receipt of this Order sworn under
penalty of perjury
B For 5 years after entry of this Order Defendant must deliver
a copy of this Order to (I) all principals officers and directors (2) all
employees agents and representatives with authority to approve
advertising or marketing material on behalf of Defendant for any
Prepaid Product and all employees who supervise the formulation of
advertising and marketing material for any Prepaid Product and (3) any
business entity resulting from any change in structure as set forth in the
Section titled Compliance Reporting Delivery must occur within 7 days
of entry of this Order for current personnel For all others delivery must
occur before they assume their responsibilities
C From each individual or entity to which Defendant delivered
a copy of this Order Defendant must obtain within 30 days a signed
and dated acknowledgment of receipt of this Order (an Order
Acknowledgement) Page 18 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 18 of 32
COMPLIANCE REPORTING
IT IS FURTHER ORDERED that Defendant make timely
submissions to the Commission
A One year after entry of this Order Defendant must submit a
compliance report sworn under penalty of perjury Defendant must
1 identify the primary physical postal and email address
and telephone number as designated points of contact which
representatives of the Commission may use to communicate with Defendant
2 identify all of Defendants businesses by all of their
names telephone numbers and physical postal email and Internet
addresses
3 describe the activities of each business including the
goods and services offered and the means of advertising marketing and
sales
4 describe in detail whether and how Defendant is in
compliance with each Section of this Order and
5 provide a copy of each Order Acknowledgment obtained
pursuant to this Order unless previously submitted to the Commission
B For 20 years after entry of this Order Defendant must submit a
compliance notice sworn under penalty of perjury within 14 days of any
Page 19 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 19 of 32
in the following
1 any designated point of contact or
2 the structure of Defendant or any entity that Defendant
has any ownership interest in or controls directly or indirectly that may
affect compliance obligations arising under this Order including creation
merger sale or dissolution of the entity or any subsidiary parent or
affiliate that engages in any acts or practices subject to this Order
C Defendant must submit to the Commission notice of the filing
of any bankruptcy petition insolvency proceeding or similar proceeding by
or against Defendant within 14 days of its filing
D Any submission to the Commission required by this Order to be
sworn under penalty of perjury must be true and accurate and comply with
28 USC sect 1746 such as by concluding I declare under penalty of perjury
under the laws of the United States of America that the foregoing is true
and correct Executed on [date] and supplying the date signatorys full
name title (if applicable) and signature
E Unless otherwise directed by a Commission representative in
writing all submissions to the Commission pursuant to this Order must be
emailed to DEbriefftcgov or sent by overnight courier (not the US Postal
Service) to Associate Director for Enforcement Bureau of Consumer
Page 20 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 20 of 32
Federal Trade Commission 600 Pennsylvania Avenue NW
Washington DC 20580 The subject line must begin FTC v NetSpend
Corporation Xl 70006
VII RECORDKEEPING
IT IS FURTHER ORDERED that Defendant must create certain
records for 20 years after entry of the Order and retain each such record for
5 years Specifically Defendant must create and retain the following
records in connection with the advertisement marketing promotion
offering for sale sale management or servicing of any Prepaid Product
A accounting records showing the revenues from all such goods
or services sold
B personnel records of Defendant showing for each individual
providing services whether as an employee or otherwise that persons
name addresses telephone numbers job title or position dates of service
and (if applicable) the reason for termination
C records of all consumer complaints whether received directly
or indirectly related to access to funds which shall include but not be
limited to available consumer contact information date of complaint
source of complaint category of complaint and the outcome provided that
this Subparagraph shall apply only to consumer complaints related to
Page 21of26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 21 of 32
to funds received directly or indirectly from a consumer a federal or
state agency the Better Business Bureau State Attorneys General as
well as any consumer lawsuit
D all records necessary to demonstrate full compliance with each
provision of this Order including all submissions to the Commission
E a copy of each unique advertisement or other marketing
material created produced or approved by Defendant and
F records of blocks that restrict consumer access to Prepaid
Products requests by consumers to activate and register Prepaid
Products when submitted directly to Defendant or when records of such
requests are available to Defendant requests by consumers to lift blocks
on Prepaid Products requests by consumers for closure of Prepaid Product
accounts and any subsequent disbursements of funds to consumers
consumer notifications of account errors and disbursements of provisional
credits Provided however that to the extent Defendant does not
maintain records as provided in this Subsection in the ordinary course of
business as of the date of this Order and must implement new record
keeping policies systems or procedures to create them Defendant shall
implement such policies systems or procedures within 90 days after the
date of this Order Provided further that Defendant shall not be required
Page 22 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 22 of 32
create or maintain any record identified in this Subsection if Defendant
demonstrates that it is prohibited by banking law or regulation from
creating or maintaining such record
VIII COMPLIANCE MONITORING
IT IS FURTHER ORDERED that for the purpose of monitoring
Defendants compliance with this Order and any failure to transfer any
assets as required by this Order
A Within 14 days of receipt of a written request from a
representative of the Commission Defendant must submit additional
compliance reports or other requested information which must be sworn
under penalty of perjury and appear for depositions and produce
documents for inspection and copying The Commission is also authorized
to obtain discovery without further leave of court using any of the
procedures prescribed by Federal Rules of Civil Procedure 29 30 (including
telephonic depositions) 31 33 34 36 45 and 69
B For matters concerning this Order the Commission is
authorized to communicate directly with Defendant Defendant must
permit representatives of the Commission to interview any employee or
Page 23 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 23 of 32
person affiliated with Defendant who has agreed to such an
interview The person interviewed may have counsel present
C The Commission may use all other lawful means including
posing through its representatives as consumers suppliers or other
individuals or entities to Defendant or any individual or entity affiliated
with Defendant without the necessity of identification or prior notice
Nothing in this Order limits the Commissions lawful use of compulsory
process pursuant to Sections 9 and 20 of the FTC Act 15 USC sectsect 49
57b-l
IX RETENTION OF JURISDICTION
IT IS FURTHER ORDERED that this Court retains jurisdiction of this
matter for purposes of construction modification and enforcement of this
Order
SO ORDERED this ___ day of ____________ _ 2017
Amy Totenberg UNITED STATES DISTRICT JUDGE
Page 24 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 24 of 32
STIPULATED AND AGREED FOR
PLAINTIFF
FEDERAL TRADE COJM11ISSION
Dated jQH~ S ( 2-6 - - -=--=---------------- ------
7
Mark By fe~~
Glassman Adam M Wesolowski Federal Trade Commission 600 Pennsylvania Avenue NW Mailstop CC-10232 Washington DC 20580 Email mglassmanftcgov awesolowskiftcgov Phone (202) 326-2826 (Glassman) (202) 326-3068 (Wesolowski) Fax (202) 326-3768
By 12rdf-d-cgtltd ~ Robin L Rock (Bar No 629532) Federal Trade Commission 225 Peachtree Street NE Suite 1500 Atlanta GA 30303 Email rrockftcgov Phone (404) 656-1368 Fax (404) 656-1379
Attorneys for Plaintiff FEDERAL TRADE COMMISSION
Page 25 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 25 of 32
DE~gSPEND CORPORATION
Diane By~
McCartnev fv~~
- d Vice President Compliance NETSPEND CORPORATION
MORRISON amp FOERSTER LLP
Steven JVI Kaufmann Natalie Fleming ~olen 2000 Pennsylvania Avenue Vv ashington DC 20006 Telephone (212) 468middot8000 Ekfl 11fm ann~mofocom nilemi]1g_g_ol~n(~mofoco1y~
Sarah N Davis 425 Market Street San Francisco California 94105-2482 Telephone (415) 268-7000 Sarah Do yi s(ahn ofo com
By---~-=-~+----=-1i__~___ Michael B Terry Georgia Bar No 702582 BONDURANl MIXSON amp ELMORE LLP 1201 West Peachtree Street NV Suite 3900 Atlanta GA 30309 Email er1middotvbm elaw99nl (404) 881 middot4100
Attorneys for Defendant NetSpend Corporation
Page 26 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 26 of 32
Case 116-cv-04203-AT Document 41 Filed 033117 Page 27 of 32
Appendix A-1
[ON NETSPEND CORPORATION LETTERHEAD]
IMPORTANT NOTICE TO REMOVE NETSPEND CARD MATERIALS TO COMPLY WITH FEDERAL COURT ORDER
[insert addressee name][insert addressee address]
Dear [Third Party]
In response to a settlement with the Federal Trade Commission NetSpend Corporation (NetSpend) has agreed to a court order prohibiting the use of certain claims in marketing and other materials In accordance with this order NetSpend directs that within sixty (60) days of the date of this letter you stop using any existing NetSpend materials that state that NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval Attached hereto are copies photographs or images of sample materials subject to removal NetSpend willmake revised materials available to you shortly if it has not already provided such materials
Should you have any questions about compliance with this notification please contact [insert NetSpend contact person] Further information about the order can be obtained by visiting wwwftcgov and searching for ldquoNetSpendrdquo
Sincerely
[Name][Title]NetSpend Corporation
Case 116-cv-04203-AT Document 41 Filed 033117 Page 28 of 32
Appendix A-2
[ON NETSPEND CORPORATION LETTERHEAD]
IMPORTANT NOTICE TO UPDATE NETSPEND CARD MATERIALS TO COMPLY WITH FEDERAL COURT ORDER
[insert addressee name][insert addressee address]
Dear [Third Party]
In response to a settlement with the Federal Trade Commission NetSpend Corporation (NetSpend) has agreed to a court order prohibiting the use of certain claims in marketing and other materials In accordance with this order NetSpend [as applicable ndash as successor-in-interest to Skylight Financial Inc] directs that you affix corrective stickers to any existing NetSpend materials that state NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval
Enclosed with this letter are corrective stickers stating ldquoYou must meet identity verification requirements to activate and use the cardrdquo These stickers must be placed on the NetSpend materials in close proximity to such statements that NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval If the foregoingstatements are contained within an envelope or package that is already sealed then the sticker shall be placed in a prominent position on the outside of the envelope or package Attached also are copies photographs or images of sample materials illustrating the required correction
Should you have any questions about compliance with this notification please contact [insert NetSpend contact person] Further information about the order can be obtained by visiting wwwftcgov and searching for ldquoNetSpendrdquo
Sincerely
[Name][Title]NetSpend Corporation
Case 116-cv-04203-AT Document 41 Filed 033117 Page 29 of 32
Appendix B
Subject line of e-mail NetSpend [or such other NetSpend brand eg PayPal] Card Refunds Available
You may be eligible for a refund related to your [Branded Name (as applicable)] prepaid card [managed by NetSpend (as necessary where a branded name is used)] Under a settlement with the Federal Trade Commission NetSpend will refund certain customers
If you wish to receive your money via check complete this personalized request form [REQUEST FORM (Link to Personalized Survey per customer) Samplehttpswwwnetspendcomaccountcs surveymid= 1052492523ampsid=601] by ltDate of End of Redress Periodgt
After ltDate of End of Redress Periodgt you will need to contact both the FTC and NetSpend to receive your funds
NetSpend will mail checks within 30 days of receiving a valid request form
If instead of getting a check by filling out the form linked above you would like us to send your refund to an existing NetSpend card please contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 You may be required to submit identification documents to NetSpend to activate your card and access your money
For more information about the program visit wwwftcgovNetSpend If youhave any problems receiving your funds please let the FTC know by emailing NetSpendftcgov
Online Check Request Form
Under the terms of NetSpendrsquos settlement with the Federal Trade Commission [link to wwwftcgovNetSpend] NetSpend will refund certain customers who loaded money on cards
How you would like to receive your money
Case 116-cv-04203-AT Document 41 Filed 033117 Page 30 of 32
_____ Close my account and mail a check to the address on my account
_____ Close my account and mail a check to another address (please enter your new address below)
_____I would like to contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 to receive my funds via a NetSpend card I understand that with this option I may be required to submit identification documents to NetSpend to activate my card and access my money
New Address Street
City
State
Zip
Phone
Finish
Case 116-cv-04203-AT Document 41 Filed 033117 Page 31 of 32
Subject line of mailed letter NetSpend [or applicable NetSpend brand eg PayPal] Card Refunds Available
You may be eligible for a refund related to your [Brand Name (as applicable)] prepaid card [managed by NetSpend (as necessary where a branded name is used)] Under a settlement with the Federal Trade Commission NetSpend willrefund certain customers
If you wish to receive your money via check complete the personalized formbelow by ltDate of End of Redress Periodgt and return it to NetSpend in the enclosed envelope If you received a refund notice from NetSpend by email you may instead go to the personalized request form linked in the email to request your refund
After ltDate of End of Redress Periodgt you will need to contact both the FTC and NetSpend to receive your funds
NetSpend will mail checks within 30 days of receiving a valid request form
For more information about the program visit wwwftcgovNetSpend If youhave any problems receiving your funds please let the FTC know by emailing NetSpendftcgov
Reference Number _________ Name ltFirst Namegt ltLast Namegt Account Address ltStreetgt ltCitygt ltStategt ltZipgt
Check Request
_____ Close my account and mail a check to the address on my account
_____ Close my account and mail a check to another address (please enter your new address below)
Street
City
Case 116-cv-04203-AT Document 41 Filed 033117 Page 32 of 32
State
Zip
Phone
_____I would like to contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 to receive my funds via a NetSpend card I understand that with this option I may be required to submit identification documents to NetSpend to activate my card and access my money
Enclosure Envelope addressed to NetSpend with postage prepaid
promotion offering for sale sale management or servicing of
any Prepaid Product are permanently restrained and enjoined from
expressly or by implication misrepresenting or assisting others in
misrepresenting
A Any fact regarding the length of time or conditions
necessary before (1) Prepaid Products will be ready to use or (2)
consumers will have access to funds
B Any fact regarding the length of time or conditions
necessary to gain approval to use a Prepaid Product including that
consumers are guaranteed approval
C Any fact regarding the protections consumers have in the
event of account errors including the terms under which Defendant
will provide provisional credits except that if Defendant can
demonstrate it made bona fide errors in compliance which were
remedied when identified then such bona fide errors in compliance
shall not constitute violations of this Subsection IC and
D The comparative benefits of Defendants Prepaid Products
to debit card accounts or other payment accounts or payment methods
including that they provide access to funds faster than debit card
accounts or other payment accounts or payment methods
Page 5 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 5 of 32
NOTICE TO THIRD PARTIES TO REMOVE CERTAIN NETSPEND MARKETING MATERIAL
A Except as set forth below in Subsection IIB Defendant shall
deliver as soon as practicable but in no event later than 60 days after entry
of this Order (the Notice Period) an exact copy of the notice attached to
this Order as Appendix A-1 showing the date of mailing to each third-party
necessary to implement the removal of Defendants marketing or advertising
material that does not comply with the standards set forth in this Order and
is still in the stream of commerce (Third Party Material) The Notice
Period and all other deadlines provided for in this Consent Order may be
extended as provided herein or by written stipulation or agreement of the
Parties without further order of the Court The notice required by this
paragraph may include attachments with copies photographs or images of
sample materials subject to removal but shall not include any other
document or enclosures other than those referenced in Appendix A-1 and
may be sent to the principal place of business of each entity Provision of
such notice by Defendant shall constitute sufficient corrective action by
Defendant with respect to Third Party Material covered by the notice
B To the extent that this Order requires Defendant to remove
from the marketplace Third Party Material as defined above in Subsection
Page 6 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 6 of 32
the replacement of which requires additional time for production andor
approval by the Issuing Banks (Production Material) then Defendant shall
deliver as soon as practicable but in no event later than the end of the
Notice Period an exact copy of the notice attached to this Order as Appendix
A-2 and the stickers with corrective text referenced in the notice to each
third-party necessary to implement the placement of the stickers on the
Production Material The text of the stickers shall be of like prominence as
the claims they correct Such notice shall show the date of mailing to each
third party to which Defendant has provided the notice The notice provided
for in this paragraph must include a sufficient quantity of stickers and may
include attachments with copies photographs or images of sample
materials illustrating the required correction but shall not include any other
document or enclosures other than those referenced in Appendix A-2 and
may be sent to the principal place of business of each entity Provision of
such notice and stickers by Defendant shall constitute sufficient corrective
action by Defendant with respect to Production Material covered by the
notice
III MONETARY JUDGMENT
IT IS FURTHER ORDERED that Defendant shall provide monetary
relief totaling no less than fifty-three million dollars ($53000000)
Page 7 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 7 of 32
of balances of forty million dollars ($40000000) on deposit in
customer accounts at Issuing Banks as of August 31 2016 and fees of
thirteen million dollars ($13000000) as follows
A Within the Notice Period Defendant shall provide a notice
substantially similar to the form set forth in Appendix B (the Notice) to all
consumers with a Covered Consumer Account for whom Defendant possesses
sufficient consumer contact information at no cost to the consumer by mail
and email (notwithstanding any prior requests by the consumer to opt out of
email messages from Defendant) and on Defendants webpage All such
Notices shall be sent within sixty (60) days after entry of this Order and
may be sent on a rolling basis during that period Provided however that
Defendant need not provide Notice
1 If Defendant can demonstrate that a Covered Consumer
Account has been activated or refunded in full had access to the funds in full
or becomes subject to the process of escheat before the Notice is required to be
sent for that account
2 If Defendant can demonstrate to the Commission that
providing Notice to a specific consumer is prohibited by law
3 By mail for Covered Consumer Accounts that had an initial
Page 8 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 8 of 32
of less than five dollars ($5) except that such notice shall still be
provided by email
4 If within five (5) business days of the entry of this Order
Defendant has initiated a process to confer with the Internal Revenue Service
(IRS) regarding (a) certain Covered Consumer Accounts with a remaining
balance associated with a tax refund and (b) whether the IRS requests the
return of such tax refund amount If the IRS responds that it does not
request the return of such tax refund amount or to the extent a consumer is
entitled to a refund of amounts in addition to the tax refund amount
Defendant shall send Notice to the consumer within the later of fourteen (14)
days of such response or the conclusion of Notice Period If the IRS requests
the return of such tax refund amounts those funds shall be returned to the
IRS
B Within thirty (30) days of the request by a consumer with a
Covered Consumer Account that is made within the Consumer Redress
Period Defendant shall send the consumer a refund check by first class US
Mail postage prepaid unless a consumer requests to receive their funds via
another method made available by Defendant and the consumer completes
any necessary identity verification and activation processes within fourteen
Page 9of26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 9 of 32
days of such request Refund checks and amounts made available via
other options shall include such Covered Consumer Account balance and fees
charged to the consumer before activation of an account that have not
already been credited All payments to consumers hereunder shall be subject
to reasonable and appropriate fraud prevention procedures and NetSpend
may decline a consumer refund request if it has credible evidence that the
request is fraudulent or duplicative For any consumer who attempts to
assert a claim to an account as to which a claim has already has been
submitted Defendant shall direct the consumer to contact the FTC to seek
any redress
C Within 30 days after the conclusion of the Consumer Redress
Period (the Fee Payment Date) Defendant shall
1 Pay to the Commission thirteen million dollars
($13000000) reflecting fees charged by Defendant (the Fee Payment
Amount) provided however that the Fee Payment Amount shall be reduced
by the amount of any fees charged as of August 31 2016 that NetSpend
subsequent to that date (a) refunded to a consumer with a Covered Consumer
Account (b) credited to activated Covered Consumer Accounts or (c) returned
to the IRS as provided above A refund shall be deemed to have occurred on
Page 10 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 10 of 32
date when a check that includes the funds is mailed or a consumer is
granted access to the funds on the consumers account Payment to the
Commission must be made by electronic fund transfer in accordance with
instructions provided by a representative of the Commission To the extent
that the foregoing reductions exceed $13000000 then additional reductions
shall be applied to the amounts to be paid to the Commission pursuant to
Subsections IIID and E
2 Provide to counsel for the Commission a sworn written
report that details (a) the disposition by account of all funds made available
or refunded to Covered Consumer Accounts (b) all claims denied with respect
to Covered Consumer Accounts because of fraud or duplication (c) funds
submitted to the IRS and (d) all funds included in the Fee Payment Amount
including any reductions thereof
D On the Fee Payment Date Defendant shall also
1 Pay to the Commission an amount comprised of (a) fees
charged if any including account maintenance fees (also referred to as
account inactivity fees) and monthly or annual plan fees to a Covered
Consumer Account between September 1 2016 and the conclusion of the
Consumer Redress Period that were not (i) refunded (ii) credited to an
Page 11of26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 11 of 32
Covered Consumer Account or otherwise made available to the
consumer (iii) returned to the IRS or (iv) charged after funds were made
available by activation of a Covered Consumer Account at the request of the
consumer in which case such fees described in clause (i) - (iv) above shall be
deemed to be funds disposed of for purposes of this Order including
Subsection IIIF and (b) any sums retained by Defendant related to a
Covered Consumer Account after the conclusion of the escheatment period
applicable to the account
2 Provide to counsel for the Commission a sworn written
report that details the disposition by account of (a) all funds paid to the
Commission under Subsection IIIDl and (b) all Covered Consumer
Accounts that were activated or closed between September 1 2016 and the
conclusion of the Consumer Redress Period
E Beginning six months after the conclusion of the Consumer
Redress Period and every six months thereafter (the Six Month
Adjustment Dates) until all funds on deposit in Covered Consumer
Accounts as of the conclusion of the Consumer Redress Period are
distributed pursuant to the following adjustments or reductions (i) funds in
Covered Consumer Accounts are refunded held in activated accounts or
Page 12 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 12 of 32
made available to consumers (ii) funds in Covered Consumer
Accounts are paid to the FTC (iii) funds in Covered Consumer Accounts are
returned to the IRS (iv) funds in Covered Consumer Accounts are paid or
returned to any other party with a bona fide claim to such funds or (v) funds
in Covered Consumer Accounts are subject to initiation of the process of
escheat (the Covered Consumer Account Adjustments) Defendant shall
sixty (60) days after each Six Month Adjustment Date (the Six Month
Payment Date)
1 Pay to the Commission an amount comprised of (a) fees
charged if any including account maintenance fees (also referred to as
account inactivity fees) and monthly or annual plan fees to a Covered
Consumer Account during that six month period that were not (i) refunded
(ii) credited to an activated Covered Consumer Account or otherwise made
available to the consumer (iii) returned to the IRS or (iv) charged after funds
were made available by activation of a Covered Consumer Account at the
request of the consumer in which case such fees described in clauses (i) middot (iv)
above shall be deemed to be funds disposed of for purposes of this Order
including Subsection IIIF and (b) any sums retained by Defendant related to
a Covered Consumer Account after the conclusion of the escheatment period
Page 13 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 13 of 32
to the account The total sum of all of the payments on the Six
Month Payment Dates shall not exceed the amount of funds on deposit in
Covered Consumer Accounts as of the conclusion of the Consumer Redress
Period and each individual payment on a Six Month Payment Date shall not
exceed the amount of funds on deposit in Covered Consumer Accounts as of
the prior Six Month Adjustment Date after applying the Covered Consumer
Account Adjustments
2 Provide to counsel for the Commission a sworn written
report that details the disposition of the following by account (a) all funds
paid to the Commission under Subsection IIIE L (b) all Covered Consumer
Accounts that were activated or closed during that six month period (c) all
Covered Consumer Account Adjustments and (d) all funds that remain on
deposit in Covered Consumer Accounts after application of the Covered
Consumer Adjustments
F To the extent that any funds included in the monetary relief
identified in this Section that totals no less than fifty-three million dollars
($53000000) are not disposed of by operation of Subsections IIIA -IIIE
Defendant shall pay the amount not disposed of by operation of Subsections
IIIA -IIIE to the Commission sixty days after the last Six Month Payment
Page 14 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 14 of 32
G Defendant relinquishes dominion and all legal and equitable
right title and interest in all assets transferred to the FTC the IRS
consumers or any third-party pursuant to this Order and may not seek the
return of any assets
H The facts alleged in the Complaint will be taken as true
without further proof in any subsequent civil litigation by or on behalf of
the Commission to enforce its rights to any payment or monetary judgment
pursuant to this Order such as a claim of nondischargeability in any
bankruptcy case
I The facts alleged in the Complaint establish all elements
necessary to sustain an action by the Commission pursuant to Section
523(a)(2)(A) of the Bankruptcy Code 11 USC sect 523(a)(2)(A) and this
Order will have collateral estoppel effect for such purposes
J Defendants admissions in Subsections IIIHand IIII above are
not intended to be nor shall they be construed as admissions with respect to
any claim by any third party
K Defendant acknowledges that its Taxpayer Identification
Numbers (Social Security Numbers or Employer Identification Numbers)
Page 15 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 15 of 32
Defendant must submit to the Commission may be used for
collecting and reporting on any delinquent amount arising out of this Order
in accordance with 31 USC sect7701
L All money paid to the Commission pursuant to this Order may be
deposited into a fund administered by the Commission or its designee to be
used for equitable relief including consumer redress and any attendant
expenses for the administration of any redress fund If a representative of
the Commission decides that direct redress to consumers is wholly or
partially impracticable or money remains after redress is completed the
Commission may apply any remaining money for such other equitable relief
(including consumer information remedies) as it determines to be reasonably
related to Defendants practices alleged in the Complaint Any money not
used for such equitable relief is to be deposited to the US Treasury as
disgorgement Defendant has no right to challenge any actions the
Commission or its representatives may take pursuant to this Subsection
IV CUSTOMER INFORMATION
IT IS FURTHER ORDERED that Defendant Defendants officers
agents employees and attorneys and all other persons in active concert
or participation with any of them who receive actual notice of this Order
Page 16 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 16 of 32
acting directly or indirectly are permanently restrained and
enjoined from failing to provide customer information in its possession
custody or control that is sufficient to enable the Commission to efficiently
administer consumer redress including consumer name phone number
address other contact information account number and account balance or
other reasonably available information that the Commission requests to
effectuate consumer redress If a representative of the Commission requests
in writing any such information in Defendants possession custody or
control related to redress Defendant must provide it in the form prescribed
by the Commission within 14 business days
The Parties anticipate that consumers may make inquiries to
Defendant regarding consumer funds subject to this Order Defendant shall
maintain a record of such contacts including consumer contact information
and shall provide such records to the Commission as required in this Section
IV Following receipt of consumer inquiries that should properly be directed
to the Commission rather than Defendant Defendant shall direct the
consumer to contact the FTC at a number and address specified by the FTC
for this purpose
Page 17 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 17 of 32
ORDER ACKNOWLEDGMENTS
IT IS FURTHER ORDERED that Defendant obtains
acknowledgments of receipt of this Order
A Defendant within 7 days of entry of this Order must submit to
the Commission an acknowledgment of receipt of this Order sworn under
penalty of perjury
B For 5 years after entry of this Order Defendant must deliver
a copy of this Order to (I) all principals officers and directors (2) all
employees agents and representatives with authority to approve
advertising or marketing material on behalf of Defendant for any
Prepaid Product and all employees who supervise the formulation of
advertising and marketing material for any Prepaid Product and (3) any
business entity resulting from any change in structure as set forth in the
Section titled Compliance Reporting Delivery must occur within 7 days
of entry of this Order for current personnel For all others delivery must
occur before they assume their responsibilities
C From each individual or entity to which Defendant delivered
a copy of this Order Defendant must obtain within 30 days a signed
and dated acknowledgment of receipt of this Order (an Order
Acknowledgement) Page 18 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 18 of 32
COMPLIANCE REPORTING
IT IS FURTHER ORDERED that Defendant make timely
submissions to the Commission
A One year after entry of this Order Defendant must submit a
compliance report sworn under penalty of perjury Defendant must
1 identify the primary physical postal and email address
and telephone number as designated points of contact which
representatives of the Commission may use to communicate with Defendant
2 identify all of Defendants businesses by all of their
names telephone numbers and physical postal email and Internet
addresses
3 describe the activities of each business including the
goods and services offered and the means of advertising marketing and
sales
4 describe in detail whether and how Defendant is in
compliance with each Section of this Order and
5 provide a copy of each Order Acknowledgment obtained
pursuant to this Order unless previously submitted to the Commission
B For 20 years after entry of this Order Defendant must submit a
compliance notice sworn under penalty of perjury within 14 days of any
Page 19 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 19 of 32
in the following
1 any designated point of contact or
2 the structure of Defendant or any entity that Defendant
has any ownership interest in or controls directly or indirectly that may
affect compliance obligations arising under this Order including creation
merger sale or dissolution of the entity or any subsidiary parent or
affiliate that engages in any acts or practices subject to this Order
C Defendant must submit to the Commission notice of the filing
of any bankruptcy petition insolvency proceeding or similar proceeding by
or against Defendant within 14 days of its filing
D Any submission to the Commission required by this Order to be
sworn under penalty of perjury must be true and accurate and comply with
28 USC sect 1746 such as by concluding I declare under penalty of perjury
under the laws of the United States of America that the foregoing is true
and correct Executed on [date] and supplying the date signatorys full
name title (if applicable) and signature
E Unless otherwise directed by a Commission representative in
writing all submissions to the Commission pursuant to this Order must be
emailed to DEbriefftcgov or sent by overnight courier (not the US Postal
Service) to Associate Director for Enforcement Bureau of Consumer
Page 20 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 20 of 32
Federal Trade Commission 600 Pennsylvania Avenue NW
Washington DC 20580 The subject line must begin FTC v NetSpend
Corporation Xl 70006
VII RECORDKEEPING
IT IS FURTHER ORDERED that Defendant must create certain
records for 20 years after entry of the Order and retain each such record for
5 years Specifically Defendant must create and retain the following
records in connection with the advertisement marketing promotion
offering for sale sale management or servicing of any Prepaid Product
A accounting records showing the revenues from all such goods
or services sold
B personnel records of Defendant showing for each individual
providing services whether as an employee or otherwise that persons
name addresses telephone numbers job title or position dates of service
and (if applicable) the reason for termination
C records of all consumer complaints whether received directly
or indirectly related to access to funds which shall include but not be
limited to available consumer contact information date of complaint
source of complaint category of complaint and the outcome provided that
this Subparagraph shall apply only to consumer complaints related to
Page 21of26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 21 of 32
to funds received directly or indirectly from a consumer a federal or
state agency the Better Business Bureau State Attorneys General as
well as any consumer lawsuit
D all records necessary to demonstrate full compliance with each
provision of this Order including all submissions to the Commission
E a copy of each unique advertisement or other marketing
material created produced or approved by Defendant and
F records of blocks that restrict consumer access to Prepaid
Products requests by consumers to activate and register Prepaid
Products when submitted directly to Defendant or when records of such
requests are available to Defendant requests by consumers to lift blocks
on Prepaid Products requests by consumers for closure of Prepaid Product
accounts and any subsequent disbursements of funds to consumers
consumer notifications of account errors and disbursements of provisional
credits Provided however that to the extent Defendant does not
maintain records as provided in this Subsection in the ordinary course of
business as of the date of this Order and must implement new record
keeping policies systems or procedures to create them Defendant shall
implement such policies systems or procedures within 90 days after the
date of this Order Provided further that Defendant shall not be required
Page 22 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 22 of 32
create or maintain any record identified in this Subsection if Defendant
demonstrates that it is prohibited by banking law or regulation from
creating or maintaining such record
VIII COMPLIANCE MONITORING
IT IS FURTHER ORDERED that for the purpose of monitoring
Defendants compliance with this Order and any failure to transfer any
assets as required by this Order
A Within 14 days of receipt of a written request from a
representative of the Commission Defendant must submit additional
compliance reports or other requested information which must be sworn
under penalty of perjury and appear for depositions and produce
documents for inspection and copying The Commission is also authorized
to obtain discovery without further leave of court using any of the
procedures prescribed by Federal Rules of Civil Procedure 29 30 (including
telephonic depositions) 31 33 34 36 45 and 69
B For matters concerning this Order the Commission is
authorized to communicate directly with Defendant Defendant must
permit representatives of the Commission to interview any employee or
Page 23 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 23 of 32
person affiliated with Defendant who has agreed to such an
interview The person interviewed may have counsel present
C The Commission may use all other lawful means including
posing through its representatives as consumers suppliers or other
individuals or entities to Defendant or any individual or entity affiliated
with Defendant without the necessity of identification or prior notice
Nothing in this Order limits the Commissions lawful use of compulsory
process pursuant to Sections 9 and 20 of the FTC Act 15 USC sectsect 49
57b-l
IX RETENTION OF JURISDICTION
IT IS FURTHER ORDERED that this Court retains jurisdiction of this
matter for purposes of construction modification and enforcement of this
Order
SO ORDERED this ___ day of ____________ _ 2017
Amy Totenberg UNITED STATES DISTRICT JUDGE
Page 24 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 24 of 32
STIPULATED AND AGREED FOR
PLAINTIFF
FEDERAL TRADE COJM11ISSION
Dated jQH~ S ( 2-6 - - -=--=---------------- ------
7
Mark By fe~~
Glassman Adam M Wesolowski Federal Trade Commission 600 Pennsylvania Avenue NW Mailstop CC-10232 Washington DC 20580 Email mglassmanftcgov awesolowskiftcgov Phone (202) 326-2826 (Glassman) (202) 326-3068 (Wesolowski) Fax (202) 326-3768
By 12rdf-d-cgtltd ~ Robin L Rock (Bar No 629532) Federal Trade Commission 225 Peachtree Street NE Suite 1500 Atlanta GA 30303 Email rrockftcgov Phone (404) 656-1368 Fax (404) 656-1379
Attorneys for Plaintiff FEDERAL TRADE COMMISSION
Page 25 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 25 of 32
DE~gSPEND CORPORATION
Diane By~
McCartnev fv~~
- d Vice President Compliance NETSPEND CORPORATION
MORRISON amp FOERSTER LLP
Steven JVI Kaufmann Natalie Fleming ~olen 2000 Pennsylvania Avenue Vv ashington DC 20006 Telephone (212) 468middot8000 Ekfl 11fm ann~mofocom nilemi]1g_g_ol~n(~mofoco1y~
Sarah N Davis 425 Market Street San Francisco California 94105-2482 Telephone (415) 268-7000 Sarah Do yi s(ahn ofo com
By---~-=-~+----=-1i__~___ Michael B Terry Georgia Bar No 702582 BONDURANl MIXSON amp ELMORE LLP 1201 West Peachtree Street NV Suite 3900 Atlanta GA 30309 Email er1middotvbm elaw99nl (404) 881 middot4100
Attorneys for Defendant NetSpend Corporation
Page 26 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 26 of 32
Case 116-cv-04203-AT Document 41 Filed 033117 Page 27 of 32
Appendix A-1
[ON NETSPEND CORPORATION LETTERHEAD]
IMPORTANT NOTICE TO REMOVE NETSPEND CARD MATERIALS TO COMPLY WITH FEDERAL COURT ORDER
[insert addressee name][insert addressee address]
Dear [Third Party]
In response to a settlement with the Federal Trade Commission NetSpend Corporation (NetSpend) has agreed to a court order prohibiting the use of certain claims in marketing and other materials In accordance with this order NetSpend directs that within sixty (60) days of the date of this letter you stop using any existing NetSpend materials that state that NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval Attached hereto are copies photographs or images of sample materials subject to removal NetSpend willmake revised materials available to you shortly if it has not already provided such materials
Should you have any questions about compliance with this notification please contact [insert NetSpend contact person] Further information about the order can be obtained by visiting wwwftcgov and searching for ldquoNetSpendrdquo
Sincerely
[Name][Title]NetSpend Corporation
Case 116-cv-04203-AT Document 41 Filed 033117 Page 28 of 32
Appendix A-2
[ON NETSPEND CORPORATION LETTERHEAD]
IMPORTANT NOTICE TO UPDATE NETSPEND CARD MATERIALS TO COMPLY WITH FEDERAL COURT ORDER
[insert addressee name][insert addressee address]
Dear [Third Party]
In response to a settlement with the Federal Trade Commission NetSpend Corporation (NetSpend) has agreed to a court order prohibiting the use of certain claims in marketing and other materials In accordance with this order NetSpend [as applicable ndash as successor-in-interest to Skylight Financial Inc] directs that you affix corrective stickers to any existing NetSpend materials that state NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval
Enclosed with this letter are corrective stickers stating ldquoYou must meet identity verification requirements to activate and use the cardrdquo These stickers must be placed on the NetSpend materials in close proximity to such statements that NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval If the foregoingstatements are contained within an envelope or package that is already sealed then the sticker shall be placed in a prominent position on the outside of the envelope or package Attached also are copies photographs or images of sample materials illustrating the required correction
Should you have any questions about compliance with this notification please contact [insert NetSpend contact person] Further information about the order can be obtained by visiting wwwftcgov and searching for ldquoNetSpendrdquo
Sincerely
[Name][Title]NetSpend Corporation
Case 116-cv-04203-AT Document 41 Filed 033117 Page 29 of 32
Appendix B
Subject line of e-mail NetSpend [or such other NetSpend brand eg PayPal] Card Refunds Available
You may be eligible for a refund related to your [Branded Name (as applicable)] prepaid card [managed by NetSpend (as necessary where a branded name is used)] Under a settlement with the Federal Trade Commission NetSpend will refund certain customers
If you wish to receive your money via check complete this personalized request form [REQUEST FORM (Link to Personalized Survey per customer) Samplehttpswwwnetspendcomaccountcs surveymid= 1052492523ampsid=601] by ltDate of End of Redress Periodgt
After ltDate of End of Redress Periodgt you will need to contact both the FTC and NetSpend to receive your funds
NetSpend will mail checks within 30 days of receiving a valid request form
If instead of getting a check by filling out the form linked above you would like us to send your refund to an existing NetSpend card please contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 You may be required to submit identification documents to NetSpend to activate your card and access your money
For more information about the program visit wwwftcgovNetSpend If youhave any problems receiving your funds please let the FTC know by emailing NetSpendftcgov
Online Check Request Form
Under the terms of NetSpendrsquos settlement with the Federal Trade Commission [link to wwwftcgovNetSpend] NetSpend will refund certain customers who loaded money on cards
How you would like to receive your money
Case 116-cv-04203-AT Document 41 Filed 033117 Page 30 of 32
_____ Close my account and mail a check to the address on my account
_____ Close my account and mail a check to another address (please enter your new address below)
_____I would like to contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 to receive my funds via a NetSpend card I understand that with this option I may be required to submit identification documents to NetSpend to activate my card and access my money
New Address Street
City
State
Zip
Phone
Finish
Case 116-cv-04203-AT Document 41 Filed 033117 Page 31 of 32
Subject line of mailed letter NetSpend [or applicable NetSpend brand eg PayPal] Card Refunds Available
You may be eligible for a refund related to your [Brand Name (as applicable)] prepaid card [managed by NetSpend (as necessary where a branded name is used)] Under a settlement with the Federal Trade Commission NetSpend willrefund certain customers
If you wish to receive your money via check complete the personalized formbelow by ltDate of End of Redress Periodgt and return it to NetSpend in the enclosed envelope If you received a refund notice from NetSpend by email you may instead go to the personalized request form linked in the email to request your refund
After ltDate of End of Redress Periodgt you will need to contact both the FTC and NetSpend to receive your funds
NetSpend will mail checks within 30 days of receiving a valid request form
For more information about the program visit wwwftcgovNetSpend If youhave any problems receiving your funds please let the FTC know by emailing NetSpendftcgov
Reference Number _________ Name ltFirst Namegt ltLast Namegt Account Address ltStreetgt ltCitygt ltStategt ltZipgt
Check Request
_____ Close my account and mail a check to the address on my account
_____ Close my account and mail a check to another address (please enter your new address below)
Street
City
Case 116-cv-04203-AT Document 41 Filed 033117 Page 32 of 32
State
Zip
Phone
_____I would like to contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 to receive my funds via a NetSpend card I understand that with this option I may be required to submit identification documents to NetSpend to activate my card and access my money
Enclosure Envelope addressed to NetSpend with postage prepaid
NOTICE TO THIRD PARTIES TO REMOVE CERTAIN NETSPEND MARKETING MATERIAL
A Except as set forth below in Subsection IIB Defendant shall
deliver as soon as practicable but in no event later than 60 days after entry
of this Order (the Notice Period) an exact copy of the notice attached to
this Order as Appendix A-1 showing the date of mailing to each third-party
necessary to implement the removal of Defendants marketing or advertising
material that does not comply with the standards set forth in this Order and
is still in the stream of commerce (Third Party Material) The Notice
Period and all other deadlines provided for in this Consent Order may be
extended as provided herein or by written stipulation or agreement of the
Parties without further order of the Court The notice required by this
paragraph may include attachments with copies photographs or images of
sample materials subject to removal but shall not include any other
document or enclosures other than those referenced in Appendix A-1 and
may be sent to the principal place of business of each entity Provision of
such notice by Defendant shall constitute sufficient corrective action by
Defendant with respect to Third Party Material covered by the notice
B To the extent that this Order requires Defendant to remove
from the marketplace Third Party Material as defined above in Subsection
Page 6 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 6 of 32
the replacement of which requires additional time for production andor
approval by the Issuing Banks (Production Material) then Defendant shall
deliver as soon as practicable but in no event later than the end of the
Notice Period an exact copy of the notice attached to this Order as Appendix
A-2 and the stickers with corrective text referenced in the notice to each
third-party necessary to implement the placement of the stickers on the
Production Material The text of the stickers shall be of like prominence as
the claims they correct Such notice shall show the date of mailing to each
third party to which Defendant has provided the notice The notice provided
for in this paragraph must include a sufficient quantity of stickers and may
include attachments with copies photographs or images of sample
materials illustrating the required correction but shall not include any other
document or enclosures other than those referenced in Appendix A-2 and
may be sent to the principal place of business of each entity Provision of
such notice and stickers by Defendant shall constitute sufficient corrective
action by Defendant with respect to Production Material covered by the
notice
III MONETARY JUDGMENT
IT IS FURTHER ORDERED that Defendant shall provide monetary
relief totaling no less than fifty-three million dollars ($53000000)
Page 7 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 7 of 32
of balances of forty million dollars ($40000000) on deposit in
customer accounts at Issuing Banks as of August 31 2016 and fees of
thirteen million dollars ($13000000) as follows
A Within the Notice Period Defendant shall provide a notice
substantially similar to the form set forth in Appendix B (the Notice) to all
consumers with a Covered Consumer Account for whom Defendant possesses
sufficient consumer contact information at no cost to the consumer by mail
and email (notwithstanding any prior requests by the consumer to opt out of
email messages from Defendant) and on Defendants webpage All such
Notices shall be sent within sixty (60) days after entry of this Order and
may be sent on a rolling basis during that period Provided however that
Defendant need not provide Notice
1 If Defendant can demonstrate that a Covered Consumer
Account has been activated or refunded in full had access to the funds in full
or becomes subject to the process of escheat before the Notice is required to be
sent for that account
2 If Defendant can demonstrate to the Commission that
providing Notice to a specific consumer is prohibited by law
3 By mail for Covered Consumer Accounts that had an initial
Page 8 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 8 of 32
of less than five dollars ($5) except that such notice shall still be
provided by email
4 If within five (5) business days of the entry of this Order
Defendant has initiated a process to confer with the Internal Revenue Service
(IRS) regarding (a) certain Covered Consumer Accounts with a remaining
balance associated with a tax refund and (b) whether the IRS requests the
return of such tax refund amount If the IRS responds that it does not
request the return of such tax refund amount or to the extent a consumer is
entitled to a refund of amounts in addition to the tax refund amount
Defendant shall send Notice to the consumer within the later of fourteen (14)
days of such response or the conclusion of Notice Period If the IRS requests
the return of such tax refund amounts those funds shall be returned to the
IRS
B Within thirty (30) days of the request by a consumer with a
Covered Consumer Account that is made within the Consumer Redress
Period Defendant shall send the consumer a refund check by first class US
Mail postage prepaid unless a consumer requests to receive their funds via
another method made available by Defendant and the consumer completes
any necessary identity verification and activation processes within fourteen
Page 9of26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 9 of 32
days of such request Refund checks and amounts made available via
other options shall include such Covered Consumer Account balance and fees
charged to the consumer before activation of an account that have not
already been credited All payments to consumers hereunder shall be subject
to reasonable and appropriate fraud prevention procedures and NetSpend
may decline a consumer refund request if it has credible evidence that the
request is fraudulent or duplicative For any consumer who attempts to
assert a claim to an account as to which a claim has already has been
submitted Defendant shall direct the consumer to contact the FTC to seek
any redress
C Within 30 days after the conclusion of the Consumer Redress
Period (the Fee Payment Date) Defendant shall
1 Pay to the Commission thirteen million dollars
($13000000) reflecting fees charged by Defendant (the Fee Payment
Amount) provided however that the Fee Payment Amount shall be reduced
by the amount of any fees charged as of August 31 2016 that NetSpend
subsequent to that date (a) refunded to a consumer with a Covered Consumer
Account (b) credited to activated Covered Consumer Accounts or (c) returned
to the IRS as provided above A refund shall be deemed to have occurred on
Page 10 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 10 of 32
date when a check that includes the funds is mailed or a consumer is
granted access to the funds on the consumers account Payment to the
Commission must be made by electronic fund transfer in accordance with
instructions provided by a representative of the Commission To the extent
that the foregoing reductions exceed $13000000 then additional reductions
shall be applied to the amounts to be paid to the Commission pursuant to
Subsections IIID and E
2 Provide to counsel for the Commission a sworn written
report that details (a) the disposition by account of all funds made available
or refunded to Covered Consumer Accounts (b) all claims denied with respect
to Covered Consumer Accounts because of fraud or duplication (c) funds
submitted to the IRS and (d) all funds included in the Fee Payment Amount
including any reductions thereof
D On the Fee Payment Date Defendant shall also
1 Pay to the Commission an amount comprised of (a) fees
charged if any including account maintenance fees (also referred to as
account inactivity fees) and monthly or annual plan fees to a Covered
Consumer Account between September 1 2016 and the conclusion of the
Consumer Redress Period that were not (i) refunded (ii) credited to an
Page 11of26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 11 of 32
Covered Consumer Account or otherwise made available to the
consumer (iii) returned to the IRS or (iv) charged after funds were made
available by activation of a Covered Consumer Account at the request of the
consumer in which case such fees described in clause (i) - (iv) above shall be
deemed to be funds disposed of for purposes of this Order including
Subsection IIIF and (b) any sums retained by Defendant related to a
Covered Consumer Account after the conclusion of the escheatment period
applicable to the account
2 Provide to counsel for the Commission a sworn written
report that details the disposition by account of (a) all funds paid to the
Commission under Subsection IIIDl and (b) all Covered Consumer
Accounts that were activated or closed between September 1 2016 and the
conclusion of the Consumer Redress Period
E Beginning six months after the conclusion of the Consumer
Redress Period and every six months thereafter (the Six Month
Adjustment Dates) until all funds on deposit in Covered Consumer
Accounts as of the conclusion of the Consumer Redress Period are
distributed pursuant to the following adjustments or reductions (i) funds in
Covered Consumer Accounts are refunded held in activated accounts or
Page 12 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 12 of 32
made available to consumers (ii) funds in Covered Consumer
Accounts are paid to the FTC (iii) funds in Covered Consumer Accounts are
returned to the IRS (iv) funds in Covered Consumer Accounts are paid or
returned to any other party with a bona fide claim to such funds or (v) funds
in Covered Consumer Accounts are subject to initiation of the process of
escheat (the Covered Consumer Account Adjustments) Defendant shall
sixty (60) days after each Six Month Adjustment Date (the Six Month
Payment Date)
1 Pay to the Commission an amount comprised of (a) fees
charged if any including account maintenance fees (also referred to as
account inactivity fees) and monthly or annual plan fees to a Covered
Consumer Account during that six month period that were not (i) refunded
(ii) credited to an activated Covered Consumer Account or otherwise made
available to the consumer (iii) returned to the IRS or (iv) charged after funds
were made available by activation of a Covered Consumer Account at the
request of the consumer in which case such fees described in clauses (i) middot (iv)
above shall be deemed to be funds disposed of for purposes of this Order
including Subsection IIIF and (b) any sums retained by Defendant related to
a Covered Consumer Account after the conclusion of the escheatment period
Page 13 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 13 of 32
to the account The total sum of all of the payments on the Six
Month Payment Dates shall not exceed the amount of funds on deposit in
Covered Consumer Accounts as of the conclusion of the Consumer Redress
Period and each individual payment on a Six Month Payment Date shall not
exceed the amount of funds on deposit in Covered Consumer Accounts as of
the prior Six Month Adjustment Date after applying the Covered Consumer
Account Adjustments
2 Provide to counsel for the Commission a sworn written
report that details the disposition of the following by account (a) all funds
paid to the Commission under Subsection IIIE L (b) all Covered Consumer
Accounts that were activated or closed during that six month period (c) all
Covered Consumer Account Adjustments and (d) all funds that remain on
deposit in Covered Consumer Accounts after application of the Covered
Consumer Adjustments
F To the extent that any funds included in the monetary relief
identified in this Section that totals no less than fifty-three million dollars
($53000000) are not disposed of by operation of Subsections IIIA -IIIE
Defendant shall pay the amount not disposed of by operation of Subsections
IIIA -IIIE to the Commission sixty days after the last Six Month Payment
Page 14 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 14 of 32
G Defendant relinquishes dominion and all legal and equitable
right title and interest in all assets transferred to the FTC the IRS
consumers or any third-party pursuant to this Order and may not seek the
return of any assets
H The facts alleged in the Complaint will be taken as true
without further proof in any subsequent civil litigation by or on behalf of
the Commission to enforce its rights to any payment or monetary judgment
pursuant to this Order such as a claim of nondischargeability in any
bankruptcy case
I The facts alleged in the Complaint establish all elements
necessary to sustain an action by the Commission pursuant to Section
523(a)(2)(A) of the Bankruptcy Code 11 USC sect 523(a)(2)(A) and this
Order will have collateral estoppel effect for such purposes
J Defendants admissions in Subsections IIIHand IIII above are
not intended to be nor shall they be construed as admissions with respect to
any claim by any third party
K Defendant acknowledges that its Taxpayer Identification
Numbers (Social Security Numbers or Employer Identification Numbers)
Page 15 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 15 of 32
Defendant must submit to the Commission may be used for
collecting and reporting on any delinquent amount arising out of this Order
in accordance with 31 USC sect7701
L All money paid to the Commission pursuant to this Order may be
deposited into a fund administered by the Commission or its designee to be
used for equitable relief including consumer redress and any attendant
expenses for the administration of any redress fund If a representative of
the Commission decides that direct redress to consumers is wholly or
partially impracticable or money remains after redress is completed the
Commission may apply any remaining money for such other equitable relief
(including consumer information remedies) as it determines to be reasonably
related to Defendants practices alleged in the Complaint Any money not
used for such equitable relief is to be deposited to the US Treasury as
disgorgement Defendant has no right to challenge any actions the
Commission or its representatives may take pursuant to this Subsection
IV CUSTOMER INFORMATION
IT IS FURTHER ORDERED that Defendant Defendants officers
agents employees and attorneys and all other persons in active concert
or participation with any of them who receive actual notice of this Order
Page 16 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 16 of 32
acting directly or indirectly are permanently restrained and
enjoined from failing to provide customer information in its possession
custody or control that is sufficient to enable the Commission to efficiently
administer consumer redress including consumer name phone number
address other contact information account number and account balance or
other reasonably available information that the Commission requests to
effectuate consumer redress If a representative of the Commission requests
in writing any such information in Defendants possession custody or
control related to redress Defendant must provide it in the form prescribed
by the Commission within 14 business days
The Parties anticipate that consumers may make inquiries to
Defendant regarding consumer funds subject to this Order Defendant shall
maintain a record of such contacts including consumer contact information
and shall provide such records to the Commission as required in this Section
IV Following receipt of consumer inquiries that should properly be directed
to the Commission rather than Defendant Defendant shall direct the
consumer to contact the FTC at a number and address specified by the FTC
for this purpose
Page 17 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 17 of 32
ORDER ACKNOWLEDGMENTS
IT IS FURTHER ORDERED that Defendant obtains
acknowledgments of receipt of this Order
A Defendant within 7 days of entry of this Order must submit to
the Commission an acknowledgment of receipt of this Order sworn under
penalty of perjury
B For 5 years after entry of this Order Defendant must deliver
a copy of this Order to (I) all principals officers and directors (2) all
employees agents and representatives with authority to approve
advertising or marketing material on behalf of Defendant for any
Prepaid Product and all employees who supervise the formulation of
advertising and marketing material for any Prepaid Product and (3) any
business entity resulting from any change in structure as set forth in the
Section titled Compliance Reporting Delivery must occur within 7 days
of entry of this Order for current personnel For all others delivery must
occur before they assume their responsibilities
C From each individual or entity to which Defendant delivered
a copy of this Order Defendant must obtain within 30 days a signed
and dated acknowledgment of receipt of this Order (an Order
Acknowledgement) Page 18 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 18 of 32
COMPLIANCE REPORTING
IT IS FURTHER ORDERED that Defendant make timely
submissions to the Commission
A One year after entry of this Order Defendant must submit a
compliance report sworn under penalty of perjury Defendant must
1 identify the primary physical postal and email address
and telephone number as designated points of contact which
representatives of the Commission may use to communicate with Defendant
2 identify all of Defendants businesses by all of their
names telephone numbers and physical postal email and Internet
addresses
3 describe the activities of each business including the
goods and services offered and the means of advertising marketing and
sales
4 describe in detail whether and how Defendant is in
compliance with each Section of this Order and
5 provide a copy of each Order Acknowledgment obtained
pursuant to this Order unless previously submitted to the Commission
B For 20 years after entry of this Order Defendant must submit a
compliance notice sworn under penalty of perjury within 14 days of any
Page 19 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 19 of 32
in the following
1 any designated point of contact or
2 the structure of Defendant or any entity that Defendant
has any ownership interest in or controls directly or indirectly that may
affect compliance obligations arising under this Order including creation
merger sale or dissolution of the entity or any subsidiary parent or
affiliate that engages in any acts or practices subject to this Order
C Defendant must submit to the Commission notice of the filing
of any bankruptcy petition insolvency proceeding or similar proceeding by
or against Defendant within 14 days of its filing
D Any submission to the Commission required by this Order to be
sworn under penalty of perjury must be true and accurate and comply with
28 USC sect 1746 such as by concluding I declare under penalty of perjury
under the laws of the United States of America that the foregoing is true
and correct Executed on [date] and supplying the date signatorys full
name title (if applicable) and signature
E Unless otherwise directed by a Commission representative in
writing all submissions to the Commission pursuant to this Order must be
emailed to DEbriefftcgov or sent by overnight courier (not the US Postal
Service) to Associate Director for Enforcement Bureau of Consumer
Page 20 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 20 of 32
Federal Trade Commission 600 Pennsylvania Avenue NW
Washington DC 20580 The subject line must begin FTC v NetSpend
Corporation Xl 70006
VII RECORDKEEPING
IT IS FURTHER ORDERED that Defendant must create certain
records for 20 years after entry of the Order and retain each such record for
5 years Specifically Defendant must create and retain the following
records in connection with the advertisement marketing promotion
offering for sale sale management or servicing of any Prepaid Product
A accounting records showing the revenues from all such goods
or services sold
B personnel records of Defendant showing for each individual
providing services whether as an employee or otherwise that persons
name addresses telephone numbers job title or position dates of service
and (if applicable) the reason for termination
C records of all consumer complaints whether received directly
or indirectly related to access to funds which shall include but not be
limited to available consumer contact information date of complaint
source of complaint category of complaint and the outcome provided that
this Subparagraph shall apply only to consumer complaints related to
Page 21of26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 21 of 32
to funds received directly or indirectly from a consumer a federal or
state agency the Better Business Bureau State Attorneys General as
well as any consumer lawsuit
D all records necessary to demonstrate full compliance with each
provision of this Order including all submissions to the Commission
E a copy of each unique advertisement or other marketing
material created produced or approved by Defendant and
F records of blocks that restrict consumer access to Prepaid
Products requests by consumers to activate and register Prepaid
Products when submitted directly to Defendant or when records of such
requests are available to Defendant requests by consumers to lift blocks
on Prepaid Products requests by consumers for closure of Prepaid Product
accounts and any subsequent disbursements of funds to consumers
consumer notifications of account errors and disbursements of provisional
credits Provided however that to the extent Defendant does not
maintain records as provided in this Subsection in the ordinary course of
business as of the date of this Order and must implement new record
keeping policies systems or procedures to create them Defendant shall
implement such policies systems or procedures within 90 days after the
date of this Order Provided further that Defendant shall not be required
Page 22 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 22 of 32
create or maintain any record identified in this Subsection if Defendant
demonstrates that it is prohibited by banking law or regulation from
creating or maintaining such record
VIII COMPLIANCE MONITORING
IT IS FURTHER ORDERED that for the purpose of monitoring
Defendants compliance with this Order and any failure to transfer any
assets as required by this Order
A Within 14 days of receipt of a written request from a
representative of the Commission Defendant must submit additional
compliance reports or other requested information which must be sworn
under penalty of perjury and appear for depositions and produce
documents for inspection and copying The Commission is also authorized
to obtain discovery without further leave of court using any of the
procedures prescribed by Federal Rules of Civil Procedure 29 30 (including
telephonic depositions) 31 33 34 36 45 and 69
B For matters concerning this Order the Commission is
authorized to communicate directly with Defendant Defendant must
permit representatives of the Commission to interview any employee or
Page 23 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 23 of 32
person affiliated with Defendant who has agreed to such an
interview The person interviewed may have counsel present
C The Commission may use all other lawful means including
posing through its representatives as consumers suppliers or other
individuals or entities to Defendant or any individual or entity affiliated
with Defendant without the necessity of identification or prior notice
Nothing in this Order limits the Commissions lawful use of compulsory
process pursuant to Sections 9 and 20 of the FTC Act 15 USC sectsect 49
57b-l
IX RETENTION OF JURISDICTION
IT IS FURTHER ORDERED that this Court retains jurisdiction of this
matter for purposes of construction modification and enforcement of this
Order
SO ORDERED this ___ day of ____________ _ 2017
Amy Totenberg UNITED STATES DISTRICT JUDGE
Page 24 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 24 of 32
STIPULATED AND AGREED FOR
PLAINTIFF
FEDERAL TRADE COJM11ISSION
Dated jQH~ S ( 2-6 - - -=--=---------------- ------
7
Mark By fe~~
Glassman Adam M Wesolowski Federal Trade Commission 600 Pennsylvania Avenue NW Mailstop CC-10232 Washington DC 20580 Email mglassmanftcgov awesolowskiftcgov Phone (202) 326-2826 (Glassman) (202) 326-3068 (Wesolowski) Fax (202) 326-3768
By 12rdf-d-cgtltd ~ Robin L Rock (Bar No 629532) Federal Trade Commission 225 Peachtree Street NE Suite 1500 Atlanta GA 30303 Email rrockftcgov Phone (404) 656-1368 Fax (404) 656-1379
Attorneys for Plaintiff FEDERAL TRADE COMMISSION
Page 25 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 25 of 32
DE~gSPEND CORPORATION
Diane By~
McCartnev fv~~
- d Vice President Compliance NETSPEND CORPORATION
MORRISON amp FOERSTER LLP
Steven JVI Kaufmann Natalie Fleming ~olen 2000 Pennsylvania Avenue Vv ashington DC 20006 Telephone (212) 468middot8000 Ekfl 11fm ann~mofocom nilemi]1g_g_ol~n(~mofoco1y~
Sarah N Davis 425 Market Street San Francisco California 94105-2482 Telephone (415) 268-7000 Sarah Do yi s(ahn ofo com
By---~-=-~+----=-1i__~___ Michael B Terry Georgia Bar No 702582 BONDURANl MIXSON amp ELMORE LLP 1201 West Peachtree Street NV Suite 3900 Atlanta GA 30309 Email er1middotvbm elaw99nl (404) 881 middot4100
Attorneys for Defendant NetSpend Corporation
Page 26 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 26 of 32
Case 116-cv-04203-AT Document 41 Filed 033117 Page 27 of 32
Appendix A-1
[ON NETSPEND CORPORATION LETTERHEAD]
IMPORTANT NOTICE TO REMOVE NETSPEND CARD MATERIALS TO COMPLY WITH FEDERAL COURT ORDER
[insert addressee name][insert addressee address]
Dear [Third Party]
In response to a settlement with the Federal Trade Commission NetSpend Corporation (NetSpend) has agreed to a court order prohibiting the use of certain claims in marketing and other materials In accordance with this order NetSpend directs that within sixty (60) days of the date of this letter you stop using any existing NetSpend materials that state that NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval Attached hereto are copies photographs or images of sample materials subject to removal NetSpend willmake revised materials available to you shortly if it has not already provided such materials
Should you have any questions about compliance with this notification please contact [insert NetSpend contact person] Further information about the order can be obtained by visiting wwwftcgov and searching for ldquoNetSpendrdquo
Sincerely
[Name][Title]NetSpend Corporation
Case 116-cv-04203-AT Document 41 Filed 033117 Page 28 of 32
Appendix A-2
[ON NETSPEND CORPORATION LETTERHEAD]
IMPORTANT NOTICE TO UPDATE NETSPEND CARD MATERIALS TO COMPLY WITH FEDERAL COURT ORDER
[insert addressee name][insert addressee address]
Dear [Third Party]
In response to a settlement with the Federal Trade Commission NetSpend Corporation (NetSpend) has agreed to a court order prohibiting the use of certain claims in marketing and other materials In accordance with this order NetSpend [as applicable ndash as successor-in-interest to Skylight Financial Inc] directs that you affix corrective stickers to any existing NetSpend materials that state NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval
Enclosed with this letter are corrective stickers stating ldquoYou must meet identity verification requirements to activate and use the cardrdquo These stickers must be placed on the NetSpend materials in close proximity to such statements that NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval If the foregoingstatements are contained within an envelope or package that is already sealed then the sticker shall be placed in a prominent position on the outside of the envelope or package Attached also are copies photographs or images of sample materials illustrating the required correction
Should you have any questions about compliance with this notification please contact [insert NetSpend contact person] Further information about the order can be obtained by visiting wwwftcgov and searching for ldquoNetSpendrdquo
Sincerely
[Name][Title]NetSpend Corporation
Case 116-cv-04203-AT Document 41 Filed 033117 Page 29 of 32
Appendix B
Subject line of e-mail NetSpend [or such other NetSpend brand eg PayPal] Card Refunds Available
You may be eligible for a refund related to your [Branded Name (as applicable)] prepaid card [managed by NetSpend (as necessary where a branded name is used)] Under a settlement with the Federal Trade Commission NetSpend will refund certain customers
If you wish to receive your money via check complete this personalized request form [REQUEST FORM (Link to Personalized Survey per customer) Samplehttpswwwnetspendcomaccountcs surveymid= 1052492523ampsid=601] by ltDate of End of Redress Periodgt
After ltDate of End of Redress Periodgt you will need to contact both the FTC and NetSpend to receive your funds
NetSpend will mail checks within 30 days of receiving a valid request form
If instead of getting a check by filling out the form linked above you would like us to send your refund to an existing NetSpend card please contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 You may be required to submit identification documents to NetSpend to activate your card and access your money
For more information about the program visit wwwftcgovNetSpend If youhave any problems receiving your funds please let the FTC know by emailing NetSpendftcgov
Online Check Request Form
Under the terms of NetSpendrsquos settlement with the Federal Trade Commission [link to wwwftcgovNetSpend] NetSpend will refund certain customers who loaded money on cards
How you would like to receive your money
Case 116-cv-04203-AT Document 41 Filed 033117 Page 30 of 32
_____ Close my account and mail a check to the address on my account
_____ Close my account and mail a check to another address (please enter your new address below)
_____I would like to contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 to receive my funds via a NetSpend card I understand that with this option I may be required to submit identification documents to NetSpend to activate my card and access my money
New Address Street
City
State
Zip
Phone
Finish
Case 116-cv-04203-AT Document 41 Filed 033117 Page 31 of 32
Subject line of mailed letter NetSpend [or applicable NetSpend brand eg PayPal] Card Refunds Available
You may be eligible for a refund related to your [Brand Name (as applicable)] prepaid card [managed by NetSpend (as necessary where a branded name is used)] Under a settlement with the Federal Trade Commission NetSpend willrefund certain customers
If you wish to receive your money via check complete the personalized formbelow by ltDate of End of Redress Periodgt and return it to NetSpend in the enclosed envelope If you received a refund notice from NetSpend by email you may instead go to the personalized request form linked in the email to request your refund
After ltDate of End of Redress Periodgt you will need to contact both the FTC and NetSpend to receive your funds
NetSpend will mail checks within 30 days of receiving a valid request form
For more information about the program visit wwwftcgovNetSpend If youhave any problems receiving your funds please let the FTC know by emailing NetSpendftcgov
Reference Number _________ Name ltFirst Namegt ltLast Namegt Account Address ltStreetgt ltCitygt ltStategt ltZipgt
Check Request
_____ Close my account and mail a check to the address on my account
_____ Close my account and mail a check to another address (please enter your new address below)
Street
City
Case 116-cv-04203-AT Document 41 Filed 033117 Page 32 of 32
State
Zip
Phone
_____I would like to contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 to receive my funds via a NetSpend card I understand that with this option I may be required to submit identification documents to NetSpend to activate my card and access my money
Enclosure Envelope addressed to NetSpend with postage prepaid
the replacement of which requires additional time for production andor
approval by the Issuing Banks (Production Material) then Defendant shall
deliver as soon as practicable but in no event later than the end of the
Notice Period an exact copy of the notice attached to this Order as Appendix
A-2 and the stickers with corrective text referenced in the notice to each
third-party necessary to implement the placement of the stickers on the
Production Material The text of the stickers shall be of like prominence as
the claims they correct Such notice shall show the date of mailing to each
third party to which Defendant has provided the notice The notice provided
for in this paragraph must include a sufficient quantity of stickers and may
include attachments with copies photographs or images of sample
materials illustrating the required correction but shall not include any other
document or enclosures other than those referenced in Appendix A-2 and
may be sent to the principal place of business of each entity Provision of
such notice and stickers by Defendant shall constitute sufficient corrective
action by Defendant with respect to Production Material covered by the
notice
III MONETARY JUDGMENT
IT IS FURTHER ORDERED that Defendant shall provide monetary
relief totaling no less than fifty-three million dollars ($53000000)
Page 7 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 7 of 32
of balances of forty million dollars ($40000000) on deposit in
customer accounts at Issuing Banks as of August 31 2016 and fees of
thirteen million dollars ($13000000) as follows
A Within the Notice Period Defendant shall provide a notice
substantially similar to the form set forth in Appendix B (the Notice) to all
consumers with a Covered Consumer Account for whom Defendant possesses
sufficient consumer contact information at no cost to the consumer by mail
and email (notwithstanding any prior requests by the consumer to opt out of
email messages from Defendant) and on Defendants webpage All such
Notices shall be sent within sixty (60) days after entry of this Order and
may be sent on a rolling basis during that period Provided however that
Defendant need not provide Notice
1 If Defendant can demonstrate that a Covered Consumer
Account has been activated or refunded in full had access to the funds in full
or becomes subject to the process of escheat before the Notice is required to be
sent for that account
2 If Defendant can demonstrate to the Commission that
providing Notice to a specific consumer is prohibited by law
3 By mail for Covered Consumer Accounts that had an initial
Page 8 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 8 of 32
of less than five dollars ($5) except that such notice shall still be
provided by email
4 If within five (5) business days of the entry of this Order
Defendant has initiated a process to confer with the Internal Revenue Service
(IRS) regarding (a) certain Covered Consumer Accounts with a remaining
balance associated with a tax refund and (b) whether the IRS requests the
return of such tax refund amount If the IRS responds that it does not
request the return of such tax refund amount or to the extent a consumer is
entitled to a refund of amounts in addition to the tax refund amount
Defendant shall send Notice to the consumer within the later of fourteen (14)
days of such response or the conclusion of Notice Period If the IRS requests
the return of such tax refund amounts those funds shall be returned to the
IRS
B Within thirty (30) days of the request by a consumer with a
Covered Consumer Account that is made within the Consumer Redress
Period Defendant shall send the consumer a refund check by first class US
Mail postage prepaid unless a consumer requests to receive their funds via
another method made available by Defendant and the consumer completes
any necessary identity verification and activation processes within fourteen
Page 9of26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 9 of 32
days of such request Refund checks and amounts made available via
other options shall include such Covered Consumer Account balance and fees
charged to the consumer before activation of an account that have not
already been credited All payments to consumers hereunder shall be subject
to reasonable and appropriate fraud prevention procedures and NetSpend
may decline a consumer refund request if it has credible evidence that the
request is fraudulent or duplicative For any consumer who attempts to
assert a claim to an account as to which a claim has already has been
submitted Defendant shall direct the consumer to contact the FTC to seek
any redress
C Within 30 days after the conclusion of the Consumer Redress
Period (the Fee Payment Date) Defendant shall
1 Pay to the Commission thirteen million dollars
($13000000) reflecting fees charged by Defendant (the Fee Payment
Amount) provided however that the Fee Payment Amount shall be reduced
by the amount of any fees charged as of August 31 2016 that NetSpend
subsequent to that date (a) refunded to a consumer with a Covered Consumer
Account (b) credited to activated Covered Consumer Accounts or (c) returned
to the IRS as provided above A refund shall be deemed to have occurred on
Page 10 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 10 of 32
date when a check that includes the funds is mailed or a consumer is
granted access to the funds on the consumers account Payment to the
Commission must be made by electronic fund transfer in accordance with
instructions provided by a representative of the Commission To the extent
that the foregoing reductions exceed $13000000 then additional reductions
shall be applied to the amounts to be paid to the Commission pursuant to
Subsections IIID and E
2 Provide to counsel for the Commission a sworn written
report that details (a) the disposition by account of all funds made available
or refunded to Covered Consumer Accounts (b) all claims denied with respect
to Covered Consumer Accounts because of fraud or duplication (c) funds
submitted to the IRS and (d) all funds included in the Fee Payment Amount
including any reductions thereof
D On the Fee Payment Date Defendant shall also
1 Pay to the Commission an amount comprised of (a) fees
charged if any including account maintenance fees (also referred to as
account inactivity fees) and monthly or annual plan fees to a Covered
Consumer Account between September 1 2016 and the conclusion of the
Consumer Redress Period that were not (i) refunded (ii) credited to an
Page 11of26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 11 of 32
Covered Consumer Account or otherwise made available to the
consumer (iii) returned to the IRS or (iv) charged after funds were made
available by activation of a Covered Consumer Account at the request of the
consumer in which case such fees described in clause (i) - (iv) above shall be
deemed to be funds disposed of for purposes of this Order including
Subsection IIIF and (b) any sums retained by Defendant related to a
Covered Consumer Account after the conclusion of the escheatment period
applicable to the account
2 Provide to counsel for the Commission a sworn written
report that details the disposition by account of (a) all funds paid to the
Commission under Subsection IIIDl and (b) all Covered Consumer
Accounts that were activated or closed between September 1 2016 and the
conclusion of the Consumer Redress Period
E Beginning six months after the conclusion of the Consumer
Redress Period and every six months thereafter (the Six Month
Adjustment Dates) until all funds on deposit in Covered Consumer
Accounts as of the conclusion of the Consumer Redress Period are
distributed pursuant to the following adjustments or reductions (i) funds in
Covered Consumer Accounts are refunded held in activated accounts or
Page 12 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 12 of 32
made available to consumers (ii) funds in Covered Consumer
Accounts are paid to the FTC (iii) funds in Covered Consumer Accounts are
returned to the IRS (iv) funds in Covered Consumer Accounts are paid or
returned to any other party with a bona fide claim to such funds or (v) funds
in Covered Consumer Accounts are subject to initiation of the process of
escheat (the Covered Consumer Account Adjustments) Defendant shall
sixty (60) days after each Six Month Adjustment Date (the Six Month
Payment Date)
1 Pay to the Commission an amount comprised of (a) fees
charged if any including account maintenance fees (also referred to as
account inactivity fees) and monthly or annual plan fees to a Covered
Consumer Account during that six month period that were not (i) refunded
(ii) credited to an activated Covered Consumer Account or otherwise made
available to the consumer (iii) returned to the IRS or (iv) charged after funds
were made available by activation of a Covered Consumer Account at the
request of the consumer in which case such fees described in clauses (i) middot (iv)
above shall be deemed to be funds disposed of for purposes of this Order
including Subsection IIIF and (b) any sums retained by Defendant related to
a Covered Consumer Account after the conclusion of the escheatment period
Page 13 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 13 of 32
to the account The total sum of all of the payments on the Six
Month Payment Dates shall not exceed the amount of funds on deposit in
Covered Consumer Accounts as of the conclusion of the Consumer Redress
Period and each individual payment on a Six Month Payment Date shall not
exceed the amount of funds on deposit in Covered Consumer Accounts as of
the prior Six Month Adjustment Date after applying the Covered Consumer
Account Adjustments
2 Provide to counsel for the Commission a sworn written
report that details the disposition of the following by account (a) all funds
paid to the Commission under Subsection IIIE L (b) all Covered Consumer
Accounts that were activated or closed during that six month period (c) all
Covered Consumer Account Adjustments and (d) all funds that remain on
deposit in Covered Consumer Accounts after application of the Covered
Consumer Adjustments
F To the extent that any funds included in the monetary relief
identified in this Section that totals no less than fifty-three million dollars
($53000000) are not disposed of by operation of Subsections IIIA -IIIE
Defendant shall pay the amount not disposed of by operation of Subsections
IIIA -IIIE to the Commission sixty days after the last Six Month Payment
Page 14 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 14 of 32
G Defendant relinquishes dominion and all legal and equitable
right title and interest in all assets transferred to the FTC the IRS
consumers or any third-party pursuant to this Order and may not seek the
return of any assets
H The facts alleged in the Complaint will be taken as true
without further proof in any subsequent civil litigation by or on behalf of
the Commission to enforce its rights to any payment or monetary judgment
pursuant to this Order such as a claim of nondischargeability in any
bankruptcy case
I The facts alleged in the Complaint establish all elements
necessary to sustain an action by the Commission pursuant to Section
523(a)(2)(A) of the Bankruptcy Code 11 USC sect 523(a)(2)(A) and this
Order will have collateral estoppel effect for such purposes
J Defendants admissions in Subsections IIIHand IIII above are
not intended to be nor shall they be construed as admissions with respect to
any claim by any third party
K Defendant acknowledges that its Taxpayer Identification
Numbers (Social Security Numbers or Employer Identification Numbers)
Page 15 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 15 of 32
Defendant must submit to the Commission may be used for
collecting and reporting on any delinquent amount arising out of this Order
in accordance with 31 USC sect7701
L All money paid to the Commission pursuant to this Order may be
deposited into a fund administered by the Commission or its designee to be
used for equitable relief including consumer redress and any attendant
expenses for the administration of any redress fund If a representative of
the Commission decides that direct redress to consumers is wholly or
partially impracticable or money remains after redress is completed the
Commission may apply any remaining money for such other equitable relief
(including consumer information remedies) as it determines to be reasonably
related to Defendants practices alleged in the Complaint Any money not
used for such equitable relief is to be deposited to the US Treasury as
disgorgement Defendant has no right to challenge any actions the
Commission or its representatives may take pursuant to this Subsection
IV CUSTOMER INFORMATION
IT IS FURTHER ORDERED that Defendant Defendants officers
agents employees and attorneys and all other persons in active concert
or participation with any of them who receive actual notice of this Order
Page 16 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 16 of 32
acting directly or indirectly are permanently restrained and
enjoined from failing to provide customer information in its possession
custody or control that is sufficient to enable the Commission to efficiently
administer consumer redress including consumer name phone number
address other contact information account number and account balance or
other reasonably available information that the Commission requests to
effectuate consumer redress If a representative of the Commission requests
in writing any such information in Defendants possession custody or
control related to redress Defendant must provide it in the form prescribed
by the Commission within 14 business days
The Parties anticipate that consumers may make inquiries to
Defendant regarding consumer funds subject to this Order Defendant shall
maintain a record of such contacts including consumer contact information
and shall provide such records to the Commission as required in this Section
IV Following receipt of consumer inquiries that should properly be directed
to the Commission rather than Defendant Defendant shall direct the
consumer to contact the FTC at a number and address specified by the FTC
for this purpose
Page 17 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 17 of 32
ORDER ACKNOWLEDGMENTS
IT IS FURTHER ORDERED that Defendant obtains
acknowledgments of receipt of this Order
A Defendant within 7 days of entry of this Order must submit to
the Commission an acknowledgment of receipt of this Order sworn under
penalty of perjury
B For 5 years after entry of this Order Defendant must deliver
a copy of this Order to (I) all principals officers and directors (2) all
employees agents and representatives with authority to approve
advertising or marketing material on behalf of Defendant for any
Prepaid Product and all employees who supervise the formulation of
advertising and marketing material for any Prepaid Product and (3) any
business entity resulting from any change in structure as set forth in the
Section titled Compliance Reporting Delivery must occur within 7 days
of entry of this Order for current personnel For all others delivery must
occur before they assume their responsibilities
C From each individual or entity to which Defendant delivered
a copy of this Order Defendant must obtain within 30 days a signed
and dated acknowledgment of receipt of this Order (an Order
Acknowledgement) Page 18 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 18 of 32
COMPLIANCE REPORTING
IT IS FURTHER ORDERED that Defendant make timely
submissions to the Commission
A One year after entry of this Order Defendant must submit a
compliance report sworn under penalty of perjury Defendant must
1 identify the primary physical postal and email address
and telephone number as designated points of contact which
representatives of the Commission may use to communicate with Defendant
2 identify all of Defendants businesses by all of their
names telephone numbers and physical postal email and Internet
addresses
3 describe the activities of each business including the
goods and services offered and the means of advertising marketing and
sales
4 describe in detail whether and how Defendant is in
compliance with each Section of this Order and
5 provide a copy of each Order Acknowledgment obtained
pursuant to this Order unless previously submitted to the Commission
B For 20 years after entry of this Order Defendant must submit a
compliance notice sworn under penalty of perjury within 14 days of any
Page 19 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 19 of 32
in the following
1 any designated point of contact or
2 the structure of Defendant or any entity that Defendant
has any ownership interest in or controls directly or indirectly that may
affect compliance obligations arising under this Order including creation
merger sale or dissolution of the entity or any subsidiary parent or
affiliate that engages in any acts or practices subject to this Order
C Defendant must submit to the Commission notice of the filing
of any bankruptcy petition insolvency proceeding or similar proceeding by
or against Defendant within 14 days of its filing
D Any submission to the Commission required by this Order to be
sworn under penalty of perjury must be true and accurate and comply with
28 USC sect 1746 such as by concluding I declare under penalty of perjury
under the laws of the United States of America that the foregoing is true
and correct Executed on [date] and supplying the date signatorys full
name title (if applicable) and signature
E Unless otherwise directed by a Commission representative in
writing all submissions to the Commission pursuant to this Order must be
emailed to DEbriefftcgov or sent by overnight courier (not the US Postal
Service) to Associate Director for Enforcement Bureau of Consumer
Page 20 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 20 of 32
Federal Trade Commission 600 Pennsylvania Avenue NW
Washington DC 20580 The subject line must begin FTC v NetSpend
Corporation Xl 70006
VII RECORDKEEPING
IT IS FURTHER ORDERED that Defendant must create certain
records for 20 years after entry of the Order and retain each such record for
5 years Specifically Defendant must create and retain the following
records in connection with the advertisement marketing promotion
offering for sale sale management or servicing of any Prepaid Product
A accounting records showing the revenues from all such goods
or services sold
B personnel records of Defendant showing for each individual
providing services whether as an employee or otherwise that persons
name addresses telephone numbers job title or position dates of service
and (if applicable) the reason for termination
C records of all consumer complaints whether received directly
or indirectly related to access to funds which shall include but not be
limited to available consumer contact information date of complaint
source of complaint category of complaint and the outcome provided that
this Subparagraph shall apply only to consumer complaints related to
Page 21of26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 21 of 32
to funds received directly or indirectly from a consumer a federal or
state agency the Better Business Bureau State Attorneys General as
well as any consumer lawsuit
D all records necessary to demonstrate full compliance with each
provision of this Order including all submissions to the Commission
E a copy of each unique advertisement or other marketing
material created produced or approved by Defendant and
F records of blocks that restrict consumer access to Prepaid
Products requests by consumers to activate and register Prepaid
Products when submitted directly to Defendant or when records of such
requests are available to Defendant requests by consumers to lift blocks
on Prepaid Products requests by consumers for closure of Prepaid Product
accounts and any subsequent disbursements of funds to consumers
consumer notifications of account errors and disbursements of provisional
credits Provided however that to the extent Defendant does not
maintain records as provided in this Subsection in the ordinary course of
business as of the date of this Order and must implement new record
keeping policies systems or procedures to create them Defendant shall
implement such policies systems or procedures within 90 days after the
date of this Order Provided further that Defendant shall not be required
Page 22 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 22 of 32
create or maintain any record identified in this Subsection if Defendant
demonstrates that it is prohibited by banking law or regulation from
creating or maintaining such record
VIII COMPLIANCE MONITORING
IT IS FURTHER ORDERED that for the purpose of monitoring
Defendants compliance with this Order and any failure to transfer any
assets as required by this Order
A Within 14 days of receipt of a written request from a
representative of the Commission Defendant must submit additional
compliance reports or other requested information which must be sworn
under penalty of perjury and appear for depositions and produce
documents for inspection and copying The Commission is also authorized
to obtain discovery without further leave of court using any of the
procedures prescribed by Federal Rules of Civil Procedure 29 30 (including
telephonic depositions) 31 33 34 36 45 and 69
B For matters concerning this Order the Commission is
authorized to communicate directly with Defendant Defendant must
permit representatives of the Commission to interview any employee or
Page 23 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 23 of 32
person affiliated with Defendant who has agreed to such an
interview The person interviewed may have counsel present
C The Commission may use all other lawful means including
posing through its representatives as consumers suppliers or other
individuals or entities to Defendant or any individual or entity affiliated
with Defendant without the necessity of identification or prior notice
Nothing in this Order limits the Commissions lawful use of compulsory
process pursuant to Sections 9 and 20 of the FTC Act 15 USC sectsect 49
57b-l
IX RETENTION OF JURISDICTION
IT IS FURTHER ORDERED that this Court retains jurisdiction of this
matter for purposes of construction modification and enforcement of this
Order
SO ORDERED this ___ day of ____________ _ 2017
Amy Totenberg UNITED STATES DISTRICT JUDGE
Page 24 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 24 of 32
STIPULATED AND AGREED FOR
PLAINTIFF
FEDERAL TRADE COJM11ISSION
Dated jQH~ S ( 2-6 - - -=--=---------------- ------
7
Mark By fe~~
Glassman Adam M Wesolowski Federal Trade Commission 600 Pennsylvania Avenue NW Mailstop CC-10232 Washington DC 20580 Email mglassmanftcgov awesolowskiftcgov Phone (202) 326-2826 (Glassman) (202) 326-3068 (Wesolowski) Fax (202) 326-3768
By 12rdf-d-cgtltd ~ Robin L Rock (Bar No 629532) Federal Trade Commission 225 Peachtree Street NE Suite 1500 Atlanta GA 30303 Email rrockftcgov Phone (404) 656-1368 Fax (404) 656-1379
Attorneys for Plaintiff FEDERAL TRADE COMMISSION
Page 25 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 25 of 32
DE~gSPEND CORPORATION
Diane By~
McCartnev fv~~
- d Vice President Compliance NETSPEND CORPORATION
MORRISON amp FOERSTER LLP
Steven JVI Kaufmann Natalie Fleming ~olen 2000 Pennsylvania Avenue Vv ashington DC 20006 Telephone (212) 468middot8000 Ekfl 11fm ann~mofocom nilemi]1g_g_ol~n(~mofoco1y~
Sarah N Davis 425 Market Street San Francisco California 94105-2482 Telephone (415) 268-7000 Sarah Do yi s(ahn ofo com
By---~-=-~+----=-1i__~___ Michael B Terry Georgia Bar No 702582 BONDURANl MIXSON amp ELMORE LLP 1201 West Peachtree Street NV Suite 3900 Atlanta GA 30309 Email er1middotvbm elaw99nl (404) 881 middot4100
Attorneys for Defendant NetSpend Corporation
Page 26 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 26 of 32
Case 116-cv-04203-AT Document 41 Filed 033117 Page 27 of 32
Appendix A-1
[ON NETSPEND CORPORATION LETTERHEAD]
IMPORTANT NOTICE TO REMOVE NETSPEND CARD MATERIALS TO COMPLY WITH FEDERAL COURT ORDER
[insert addressee name][insert addressee address]
Dear [Third Party]
In response to a settlement with the Federal Trade Commission NetSpend Corporation (NetSpend) has agreed to a court order prohibiting the use of certain claims in marketing and other materials In accordance with this order NetSpend directs that within sixty (60) days of the date of this letter you stop using any existing NetSpend materials that state that NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval Attached hereto are copies photographs or images of sample materials subject to removal NetSpend willmake revised materials available to you shortly if it has not already provided such materials
Should you have any questions about compliance with this notification please contact [insert NetSpend contact person] Further information about the order can be obtained by visiting wwwftcgov and searching for ldquoNetSpendrdquo
Sincerely
[Name][Title]NetSpend Corporation
Case 116-cv-04203-AT Document 41 Filed 033117 Page 28 of 32
Appendix A-2
[ON NETSPEND CORPORATION LETTERHEAD]
IMPORTANT NOTICE TO UPDATE NETSPEND CARD MATERIALS TO COMPLY WITH FEDERAL COURT ORDER
[insert addressee name][insert addressee address]
Dear [Third Party]
In response to a settlement with the Federal Trade Commission NetSpend Corporation (NetSpend) has agreed to a court order prohibiting the use of certain claims in marketing and other materials In accordance with this order NetSpend [as applicable ndash as successor-in-interest to Skylight Financial Inc] directs that you affix corrective stickers to any existing NetSpend materials that state NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval
Enclosed with this letter are corrective stickers stating ldquoYou must meet identity verification requirements to activate and use the cardrdquo These stickers must be placed on the NetSpend materials in close proximity to such statements that NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval If the foregoingstatements are contained within an envelope or package that is already sealed then the sticker shall be placed in a prominent position on the outside of the envelope or package Attached also are copies photographs or images of sample materials illustrating the required correction
Should you have any questions about compliance with this notification please contact [insert NetSpend contact person] Further information about the order can be obtained by visiting wwwftcgov and searching for ldquoNetSpendrdquo
Sincerely
[Name][Title]NetSpend Corporation
Case 116-cv-04203-AT Document 41 Filed 033117 Page 29 of 32
Appendix B
Subject line of e-mail NetSpend [or such other NetSpend brand eg PayPal] Card Refunds Available
You may be eligible for a refund related to your [Branded Name (as applicable)] prepaid card [managed by NetSpend (as necessary where a branded name is used)] Under a settlement with the Federal Trade Commission NetSpend will refund certain customers
If you wish to receive your money via check complete this personalized request form [REQUEST FORM (Link to Personalized Survey per customer) Samplehttpswwwnetspendcomaccountcs surveymid= 1052492523ampsid=601] by ltDate of End of Redress Periodgt
After ltDate of End of Redress Periodgt you will need to contact both the FTC and NetSpend to receive your funds
NetSpend will mail checks within 30 days of receiving a valid request form
If instead of getting a check by filling out the form linked above you would like us to send your refund to an existing NetSpend card please contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 You may be required to submit identification documents to NetSpend to activate your card and access your money
For more information about the program visit wwwftcgovNetSpend If youhave any problems receiving your funds please let the FTC know by emailing NetSpendftcgov
Online Check Request Form
Under the terms of NetSpendrsquos settlement with the Federal Trade Commission [link to wwwftcgovNetSpend] NetSpend will refund certain customers who loaded money on cards
How you would like to receive your money
Case 116-cv-04203-AT Document 41 Filed 033117 Page 30 of 32
_____ Close my account and mail a check to the address on my account
_____ Close my account and mail a check to another address (please enter your new address below)
_____I would like to contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 to receive my funds via a NetSpend card I understand that with this option I may be required to submit identification documents to NetSpend to activate my card and access my money
New Address Street
City
State
Zip
Phone
Finish
Case 116-cv-04203-AT Document 41 Filed 033117 Page 31 of 32
Subject line of mailed letter NetSpend [or applicable NetSpend brand eg PayPal] Card Refunds Available
You may be eligible for a refund related to your [Brand Name (as applicable)] prepaid card [managed by NetSpend (as necessary where a branded name is used)] Under a settlement with the Federal Trade Commission NetSpend willrefund certain customers
If you wish to receive your money via check complete the personalized formbelow by ltDate of End of Redress Periodgt and return it to NetSpend in the enclosed envelope If you received a refund notice from NetSpend by email you may instead go to the personalized request form linked in the email to request your refund
After ltDate of End of Redress Periodgt you will need to contact both the FTC and NetSpend to receive your funds
NetSpend will mail checks within 30 days of receiving a valid request form
For more information about the program visit wwwftcgovNetSpend If youhave any problems receiving your funds please let the FTC know by emailing NetSpendftcgov
Reference Number _________ Name ltFirst Namegt ltLast Namegt Account Address ltStreetgt ltCitygt ltStategt ltZipgt
Check Request
_____ Close my account and mail a check to the address on my account
_____ Close my account and mail a check to another address (please enter your new address below)
Street
City
Case 116-cv-04203-AT Document 41 Filed 033117 Page 32 of 32
State
Zip
Phone
_____I would like to contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 to receive my funds via a NetSpend card I understand that with this option I may be required to submit identification documents to NetSpend to activate my card and access my money
Enclosure Envelope addressed to NetSpend with postage prepaid
of balances of forty million dollars ($40000000) on deposit in
customer accounts at Issuing Banks as of August 31 2016 and fees of
thirteen million dollars ($13000000) as follows
A Within the Notice Period Defendant shall provide a notice
substantially similar to the form set forth in Appendix B (the Notice) to all
consumers with a Covered Consumer Account for whom Defendant possesses
sufficient consumer contact information at no cost to the consumer by mail
and email (notwithstanding any prior requests by the consumer to opt out of
email messages from Defendant) and on Defendants webpage All such
Notices shall be sent within sixty (60) days after entry of this Order and
may be sent on a rolling basis during that period Provided however that
Defendant need not provide Notice
1 If Defendant can demonstrate that a Covered Consumer
Account has been activated or refunded in full had access to the funds in full
or becomes subject to the process of escheat before the Notice is required to be
sent for that account
2 If Defendant can demonstrate to the Commission that
providing Notice to a specific consumer is prohibited by law
3 By mail for Covered Consumer Accounts that had an initial
Page 8 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 8 of 32
of less than five dollars ($5) except that such notice shall still be
provided by email
4 If within five (5) business days of the entry of this Order
Defendant has initiated a process to confer with the Internal Revenue Service
(IRS) regarding (a) certain Covered Consumer Accounts with a remaining
balance associated with a tax refund and (b) whether the IRS requests the
return of such tax refund amount If the IRS responds that it does not
request the return of such tax refund amount or to the extent a consumer is
entitled to a refund of amounts in addition to the tax refund amount
Defendant shall send Notice to the consumer within the later of fourteen (14)
days of such response or the conclusion of Notice Period If the IRS requests
the return of such tax refund amounts those funds shall be returned to the
IRS
B Within thirty (30) days of the request by a consumer with a
Covered Consumer Account that is made within the Consumer Redress
Period Defendant shall send the consumer a refund check by first class US
Mail postage prepaid unless a consumer requests to receive their funds via
another method made available by Defendant and the consumer completes
any necessary identity verification and activation processes within fourteen
Page 9of26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 9 of 32
days of such request Refund checks and amounts made available via
other options shall include such Covered Consumer Account balance and fees
charged to the consumer before activation of an account that have not
already been credited All payments to consumers hereunder shall be subject
to reasonable and appropriate fraud prevention procedures and NetSpend
may decline a consumer refund request if it has credible evidence that the
request is fraudulent or duplicative For any consumer who attempts to
assert a claim to an account as to which a claim has already has been
submitted Defendant shall direct the consumer to contact the FTC to seek
any redress
C Within 30 days after the conclusion of the Consumer Redress
Period (the Fee Payment Date) Defendant shall
1 Pay to the Commission thirteen million dollars
($13000000) reflecting fees charged by Defendant (the Fee Payment
Amount) provided however that the Fee Payment Amount shall be reduced
by the amount of any fees charged as of August 31 2016 that NetSpend
subsequent to that date (a) refunded to a consumer with a Covered Consumer
Account (b) credited to activated Covered Consumer Accounts or (c) returned
to the IRS as provided above A refund shall be deemed to have occurred on
Page 10 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 10 of 32
date when a check that includes the funds is mailed or a consumer is
granted access to the funds on the consumers account Payment to the
Commission must be made by electronic fund transfer in accordance with
instructions provided by a representative of the Commission To the extent
that the foregoing reductions exceed $13000000 then additional reductions
shall be applied to the amounts to be paid to the Commission pursuant to
Subsections IIID and E
2 Provide to counsel for the Commission a sworn written
report that details (a) the disposition by account of all funds made available
or refunded to Covered Consumer Accounts (b) all claims denied with respect
to Covered Consumer Accounts because of fraud or duplication (c) funds
submitted to the IRS and (d) all funds included in the Fee Payment Amount
including any reductions thereof
D On the Fee Payment Date Defendant shall also
1 Pay to the Commission an amount comprised of (a) fees
charged if any including account maintenance fees (also referred to as
account inactivity fees) and monthly or annual plan fees to a Covered
Consumer Account between September 1 2016 and the conclusion of the
Consumer Redress Period that were not (i) refunded (ii) credited to an
Page 11of26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 11 of 32
Covered Consumer Account or otherwise made available to the
consumer (iii) returned to the IRS or (iv) charged after funds were made
available by activation of a Covered Consumer Account at the request of the
consumer in which case such fees described in clause (i) - (iv) above shall be
deemed to be funds disposed of for purposes of this Order including
Subsection IIIF and (b) any sums retained by Defendant related to a
Covered Consumer Account after the conclusion of the escheatment period
applicable to the account
2 Provide to counsel for the Commission a sworn written
report that details the disposition by account of (a) all funds paid to the
Commission under Subsection IIIDl and (b) all Covered Consumer
Accounts that were activated or closed between September 1 2016 and the
conclusion of the Consumer Redress Period
E Beginning six months after the conclusion of the Consumer
Redress Period and every six months thereafter (the Six Month
Adjustment Dates) until all funds on deposit in Covered Consumer
Accounts as of the conclusion of the Consumer Redress Period are
distributed pursuant to the following adjustments or reductions (i) funds in
Covered Consumer Accounts are refunded held in activated accounts or
Page 12 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 12 of 32
made available to consumers (ii) funds in Covered Consumer
Accounts are paid to the FTC (iii) funds in Covered Consumer Accounts are
returned to the IRS (iv) funds in Covered Consumer Accounts are paid or
returned to any other party with a bona fide claim to such funds or (v) funds
in Covered Consumer Accounts are subject to initiation of the process of
escheat (the Covered Consumer Account Adjustments) Defendant shall
sixty (60) days after each Six Month Adjustment Date (the Six Month
Payment Date)
1 Pay to the Commission an amount comprised of (a) fees
charged if any including account maintenance fees (also referred to as
account inactivity fees) and monthly or annual plan fees to a Covered
Consumer Account during that six month period that were not (i) refunded
(ii) credited to an activated Covered Consumer Account or otherwise made
available to the consumer (iii) returned to the IRS or (iv) charged after funds
were made available by activation of a Covered Consumer Account at the
request of the consumer in which case such fees described in clauses (i) middot (iv)
above shall be deemed to be funds disposed of for purposes of this Order
including Subsection IIIF and (b) any sums retained by Defendant related to
a Covered Consumer Account after the conclusion of the escheatment period
Page 13 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 13 of 32
to the account The total sum of all of the payments on the Six
Month Payment Dates shall not exceed the amount of funds on deposit in
Covered Consumer Accounts as of the conclusion of the Consumer Redress
Period and each individual payment on a Six Month Payment Date shall not
exceed the amount of funds on deposit in Covered Consumer Accounts as of
the prior Six Month Adjustment Date after applying the Covered Consumer
Account Adjustments
2 Provide to counsel for the Commission a sworn written
report that details the disposition of the following by account (a) all funds
paid to the Commission under Subsection IIIE L (b) all Covered Consumer
Accounts that were activated or closed during that six month period (c) all
Covered Consumer Account Adjustments and (d) all funds that remain on
deposit in Covered Consumer Accounts after application of the Covered
Consumer Adjustments
F To the extent that any funds included in the monetary relief
identified in this Section that totals no less than fifty-three million dollars
($53000000) are not disposed of by operation of Subsections IIIA -IIIE
Defendant shall pay the amount not disposed of by operation of Subsections
IIIA -IIIE to the Commission sixty days after the last Six Month Payment
Page 14 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 14 of 32
G Defendant relinquishes dominion and all legal and equitable
right title and interest in all assets transferred to the FTC the IRS
consumers or any third-party pursuant to this Order and may not seek the
return of any assets
H The facts alleged in the Complaint will be taken as true
without further proof in any subsequent civil litigation by or on behalf of
the Commission to enforce its rights to any payment or monetary judgment
pursuant to this Order such as a claim of nondischargeability in any
bankruptcy case
I The facts alleged in the Complaint establish all elements
necessary to sustain an action by the Commission pursuant to Section
523(a)(2)(A) of the Bankruptcy Code 11 USC sect 523(a)(2)(A) and this
Order will have collateral estoppel effect for such purposes
J Defendants admissions in Subsections IIIHand IIII above are
not intended to be nor shall they be construed as admissions with respect to
any claim by any third party
K Defendant acknowledges that its Taxpayer Identification
Numbers (Social Security Numbers or Employer Identification Numbers)
Page 15 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 15 of 32
Defendant must submit to the Commission may be used for
collecting and reporting on any delinquent amount arising out of this Order
in accordance with 31 USC sect7701
L All money paid to the Commission pursuant to this Order may be
deposited into a fund administered by the Commission or its designee to be
used for equitable relief including consumer redress and any attendant
expenses for the administration of any redress fund If a representative of
the Commission decides that direct redress to consumers is wholly or
partially impracticable or money remains after redress is completed the
Commission may apply any remaining money for such other equitable relief
(including consumer information remedies) as it determines to be reasonably
related to Defendants practices alleged in the Complaint Any money not
used for such equitable relief is to be deposited to the US Treasury as
disgorgement Defendant has no right to challenge any actions the
Commission or its representatives may take pursuant to this Subsection
IV CUSTOMER INFORMATION
IT IS FURTHER ORDERED that Defendant Defendants officers
agents employees and attorneys and all other persons in active concert
or participation with any of them who receive actual notice of this Order
Page 16 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 16 of 32
acting directly or indirectly are permanently restrained and
enjoined from failing to provide customer information in its possession
custody or control that is sufficient to enable the Commission to efficiently
administer consumer redress including consumer name phone number
address other contact information account number and account balance or
other reasonably available information that the Commission requests to
effectuate consumer redress If a representative of the Commission requests
in writing any such information in Defendants possession custody or
control related to redress Defendant must provide it in the form prescribed
by the Commission within 14 business days
The Parties anticipate that consumers may make inquiries to
Defendant regarding consumer funds subject to this Order Defendant shall
maintain a record of such contacts including consumer contact information
and shall provide such records to the Commission as required in this Section
IV Following receipt of consumer inquiries that should properly be directed
to the Commission rather than Defendant Defendant shall direct the
consumer to contact the FTC at a number and address specified by the FTC
for this purpose
Page 17 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 17 of 32
ORDER ACKNOWLEDGMENTS
IT IS FURTHER ORDERED that Defendant obtains
acknowledgments of receipt of this Order
A Defendant within 7 days of entry of this Order must submit to
the Commission an acknowledgment of receipt of this Order sworn under
penalty of perjury
B For 5 years after entry of this Order Defendant must deliver
a copy of this Order to (I) all principals officers and directors (2) all
employees agents and representatives with authority to approve
advertising or marketing material on behalf of Defendant for any
Prepaid Product and all employees who supervise the formulation of
advertising and marketing material for any Prepaid Product and (3) any
business entity resulting from any change in structure as set forth in the
Section titled Compliance Reporting Delivery must occur within 7 days
of entry of this Order for current personnel For all others delivery must
occur before they assume their responsibilities
C From each individual or entity to which Defendant delivered
a copy of this Order Defendant must obtain within 30 days a signed
and dated acknowledgment of receipt of this Order (an Order
Acknowledgement) Page 18 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 18 of 32
COMPLIANCE REPORTING
IT IS FURTHER ORDERED that Defendant make timely
submissions to the Commission
A One year after entry of this Order Defendant must submit a
compliance report sworn under penalty of perjury Defendant must
1 identify the primary physical postal and email address
and telephone number as designated points of contact which
representatives of the Commission may use to communicate with Defendant
2 identify all of Defendants businesses by all of their
names telephone numbers and physical postal email and Internet
addresses
3 describe the activities of each business including the
goods and services offered and the means of advertising marketing and
sales
4 describe in detail whether and how Defendant is in
compliance with each Section of this Order and
5 provide a copy of each Order Acknowledgment obtained
pursuant to this Order unless previously submitted to the Commission
B For 20 years after entry of this Order Defendant must submit a
compliance notice sworn under penalty of perjury within 14 days of any
Page 19 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 19 of 32
in the following
1 any designated point of contact or
2 the structure of Defendant or any entity that Defendant
has any ownership interest in or controls directly or indirectly that may
affect compliance obligations arising under this Order including creation
merger sale or dissolution of the entity or any subsidiary parent or
affiliate that engages in any acts or practices subject to this Order
C Defendant must submit to the Commission notice of the filing
of any bankruptcy petition insolvency proceeding or similar proceeding by
or against Defendant within 14 days of its filing
D Any submission to the Commission required by this Order to be
sworn under penalty of perjury must be true and accurate and comply with
28 USC sect 1746 such as by concluding I declare under penalty of perjury
under the laws of the United States of America that the foregoing is true
and correct Executed on [date] and supplying the date signatorys full
name title (if applicable) and signature
E Unless otherwise directed by a Commission representative in
writing all submissions to the Commission pursuant to this Order must be
emailed to DEbriefftcgov or sent by overnight courier (not the US Postal
Service) to Associate Director for Enforcement Bureau of Consumer
Page 20 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 20 of 32
Federal Trade Commission 600 Pennsylvania Avenue NW
Washington DC 20580 The subject line must begin FTC v NetSpend
Corporation Xl 70006
VII RECORDKEEPING
IT IS FURTHER ORDERED that Defendant must create certain
records for 20 years after entry of the Order and retain each such record for
5 years Specifically Defendant must create and retain the following
records in connection with the advertisement marketing promotion
offering for sale sale management or servicing of any Prepaid Product
A accounting records showing the revenues from all such goods
or services sold
B personnel records of Defendant showing for each individual
providing services whether as an employee or otherwise that persons
name addresses telephone numbers job title or position dates of service
and (if applicable) the reason for termination
C records of all consumer complaints whether received directly
or indirectly related to access to funds which shall include but not be
limited to available consumer contact information date of complaint
source of complaint category of complaint and the outcome provided that
this Subparagraph shall apply only to consumer complaints related to
Page 21of26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 21 of 32
to funds received directly or indirectly from a consumer a federal or
state agency the Better Business Bureau State Attorneys General as
well as any consumer lawsuit
D all records necessary to demonstrate full compliance with each
provision of this Order including all submissions to the Commission
E a copy of each unique advertisement or other marketing
material created produced or approved by Defendant and
F records of blocks that restrict consumer access to Prepaid
Products requests by consumers to activate and register Prepaid
Products when submitted directly to Defendant or when records of such
requests are available to Defendant requests by consumers to lift blocks
on Prepaid Products requests by consumers for closure of Prepaid Product
accounts and any subsequent disbursements of funds to consumers
consumer notifications of account errors and disbursements of provisional
credits Provided however that to the extent Defendant does not
maintain records as provided in this Subsection in the ordinary course of
business as of the date of this Order and must implement new record
keeping policies systems or procedures to create them Defendant shall
implement such policies systems or procedures within 90 days after the
date of this Order Provided further that Defendant shall not be required
Page 22 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 22 of 32
create or maintain any record identified in this Subsection if Defendant
demonstrates that it is prohibited by banking law or regulation from
creating or maintaining such record
VIII COMPLIANCE MONITORING
IT IS FURTHER ORDERED that for the purpose of monitoring
Defendants compliance with this Order and any failure to transfer any
assets as required by this Order
A Within 14 days of receipt of a written request from a
representative of the Commission Defendant must submit additional
compliance reports or other requested information which must be sworn
under penalty of perjury and appear for depositions and produce
documents for inspection and copying The Commission is also authorized
to obtain discovery without further leave of court using any of the
procedures prescribed by Federal Rules of Civil Procedure 29 30 (including
telephonic depositions) 31 33 34 36 45 and 69
B For matters concerning this Order the Commission is
authorized to communicate directly with Defendant Defendant must
permit representatives of the Commission to interview any employee or
Page 23 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 23 of 32
person affiliated with Defendant who has agreed to such an
interview The person interviewed may have counsel present
C The Commission may use all other lawful means including
posing through its representatives as consumers suppliers or other
individuals or entities to Defendant or any individual or entity affiliated
with Defendant without the necessity of identification or prior notice
Nothing in this Order limits the Commissions lawful use of compulsory
process pursuant to Sections 9 and 20 of the FTC Act 15 USC sectsect 49
57b-l
IX RETENTION OF JURISDICTION
IT IS FURTHER ORDERED that this Court retains jurisdiction of this
matter for purposes of construction modification and enforcement of this
Order
SO ORDERED this ___ day of ____________ _ 2017
Amy Totenberg UNITED STATES DISTRICT JUDGE
Page 24 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 24 of 32
STIPULATED AND AGREED FOR
PLAINTIFF
FEDERAL TRADE COJM11ISSION
Dated jQH~ S ( 2-6 - - -=--=---------------- ------
7
Mark By fe~~
Glassman Adam M Wesolowski Federal Trade Commission 600 Pennsylvania Avenue NW Mailstop CC-10232 Washington DC 20580 Email mglassmanftcgov awesolowskiftcgov Phone (202) 326-2826 (Glassman) (202) 326-3068 (Wesolowski) Fax (202) 326-3768
By 12rdf-d-cgtltd ~ Robin L Rock (Bar No 629532) Federal Trade Commission 225 Peachtree Street NE Suite 1500 Atlanta GA 30303 Email rrockftcgov Phone (404) 656-1368 Fax (404) 656-1379
Attorneys for Plaintiff FEDERAL TRADE COMMISSION
Page 25 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 25 of 32
DE~gSPEND CORPORATION
Diane By~
McCartnev fv~~
- d Vice President Compliance NETSPEND CORPORATION
MORRISON amp FOERSTER LLP
Steven JVI Kaufmann Natalie Fleming ~olen 2000 Pennsylvania Avenue Vv ashington DC 20006 Telephone (212) 468middot8000 Ekfl 11fm ann~mofocom nilemi]1g_g_ol~n(~mofoco1y~
Sarah N Davis 425 Market Street San Francisco California 94105-2482 Telephone (415) 268-7000 Sarah Do yi s(ahn ofo com
By---~-=-~+----=-1i__~___ Michael B Terry Georgia Bar No 702582 BONDURANl MIXSON amp ELMORE LLP 1201 West Peachtree Street NV Suite 3900 Atlanta GA 30309 Email er1middotvbm elaw99nl (404) 881 middot4100
Attorneys for Defendant NetSpend Corporation
Page 26 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 26 of 32
Case 116-cv-04203-AT Document 41 Filed 033117 Page 27 of 32
Appendix A-1
[ON NETSPEND CORPORATION LETTERHEAD]
IMPORTANT NOTICE TO REMOVE NETSPEND CARD MATERIALS TO COMPLY WITH FEDERAL COURT ORDER
[insert addressee name][insert addressee address]
Dear [Third Party]
In response to a settlement with the Federal Trade Commission NetSpend Corporation (NetSpend) has agreed to a court order prohibiting the use of certain claims in marketing and other materials In accordance with this order NetSpend directs that within sixty (60) days of the date of this letter you stop using any existing NetSpend materials that state that NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval Attached hereto are copies photographs or images of sample materials subject to removal NetSpend willmake revised materials available to you shortly if it has not already provided such materials
Should you have any questions about compliance with this notification please contact [insert NetSpend contact person] Further information about the order can be obtained by visiting wwwftcgov and searching for ldquoNetSpendrdquo
Sincerely
[Name][Title]NetSpend Corporation
Case 116-cv-04203-AT Document 41 Filed 033117 Page 28 of 32
Appendix A-2
[ON NETSPEND CORPORATION LETTERHEAD]
IMPORTANT NOTICE TO UPDATE NETSPEND CARD MATERIALS TO COMPLY WITH FEDERAL COURT ORDER
[insert addressee name][insert addressee address]
Dear [Third Party]
In response to a settlement with the Federal Trade Commission NetSpend Corporation (NetSpend) has agreed to a court order prohibiting the use of certain claims in marketing and other materials In accordance with this order NetSpend [as applicable ndash as successor-in-interest to Skylight Financial Inc] directs that you affix corrective stickers to any existing NetSpend materials that state NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval
Enclosed with this letter are corrective stickers stating ldquoYou must meet identity verification requirements to activate and use the cardrdquo These stickers must be placed on the NetSpend materials in close proximity to such statements that NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval If the foregoingstatements are contained within an envelope or package that is already sealed then the sticker shall be placed in a prominent position on the outside of the envelope or package Attached also are copies photographs or images of sample materials illustrating the required correction
Should you have any questions about compliance with this notification please contact [insert NetSpend contact person] Further information about the order can be obtained by visiting wwwftcgov and searching for ldquoNetSpendrdquo
Sincerely
[Name][Title]NetSpend Corporation
Case 116-cv-04203-AT Document 41 Filed 033117 Page 29 of 32
Appendix B
Subject line of e-mail NetSpend [or such other NetSpend brand eg PayPal] Card Refunds Available
You may be eligible for a refund related to your [Branded Name (as applicable)] prepaid card [managed by NetSpend (as necessary where a branded name is used)] Under a settlement with the Federal Trade Commission NetSpend will refund certain customers
If you wish to receive your money via check complete this personalized request form [REQUEST FORM (Link to Personalized Survey per customer) Samplehttpswwwnetspendcomaccountcs surveymid= 1052492523ampsid=601] by ltDate of End of Redress Periodgt
After ltDate of End of Redress Periodgt you will need to contact both the FTC and NetSpend to receive your funds
NetSpend will mail checks within 30 days of receiving a valid request form
If instead of getting a check by filling out the form linked above you would like us to send your refund to an existing NetSpend card please contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 You may be required to submit identification documents to NetSpend to activate your card and access your money
For more information about the program visit wwwftcgovNetSpend If youhave any problems receiving your funds please let the FTC know by emailing NetSpendftcgov
Online Check Request Form
Under the terms of NetSpendrsquos settlement with the Federal Trade Commission [link to wwwftcgovNetSpend] NetSpend will refund certain customers who loaded money on cards
How you would like to receive your money
Case 116-cv-04203-AT Document 41 Filed 033117 Page 30 of 32
_____ Close my account and mail a check to the address on my account
_____ Close my account and mail a check to another address (please enter your new address below)
_____I would like to contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 to receive my funds via a NetSpend card I understand that with this option I may be required to submit identification documents to NetSpend to activate my card and access my money
New Address Street
City
State
Zip
Phone
Finish
Case 116-cv-04203-AT Document 41 Filed 033117 Page 31 of 32
Subject line of mailed letter NetSpend [or applicable NetSpend brand eg PayPal] Card Refunds Available
You may be eligible for a refund related to your [Brand Name (as applicable)] prepaid card [managed by NetSpend (as necessary where a branded name is used)] Under a settlement with the Federal Trade Commission NetSpend willrefund certain customers
If you wish to receive your money via check complete the personalized formbelow by ltDate of End of Redress Periodgt and return it to NetSpend in the enclosed envelope If you received a refund notice from NetSpend by email you may instead go to the personalized request form linked in the email to request your refund
After ltDate of End of Redress Periodgt you will need to contact both the FTC and NetSpend to receive your funds
NetSpend will mail checks within 30 days of receiving a valid request form
For more information about the program visit wwwftcgovNetSpend If youhave any problems receiving your funds please let the FTC know by emailing NetSpendftcgov
Reference Number _________ Name ltFirst Namegt ltLast Namegt Account Address ltStreetgt ltCitygt ltStategt ltZipgt
Check Request
_____ Close my account and mail a check to the address on my account
_____ Close my account and mail a check to another address (please enter your new address below)
Street
City
Case 116-cv-04203-AT Document 41 Filed 033117 Page 32 of 32
State
Zip
Phone
_____I would like to contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 to receive my funds via a NetSpend card I understand that with this option I may be required to submit identification documents to NetSpend to activate my card and access my money
Enclosure Envelope addressed to NetSpend with postage prepaid
of less than five dollars ($5) except that such notice shall still be
provided by email
4 If within five (5) business days of the entry of this Order
Defendant has initiated a process to confer with the Internal Revenue Service
(IRS) regarding (a) certain Covered Consumer Accounts with a remaining
balance associated with a tax refund and (b) whether the IRS requests the
return of such tax refund amount If the IRS responds that it does not
request the return of such tax refund amount or to the extent a consumer is
entitled to a refund of amounts in addition to the tax refund amount
Defendant shall send Notice to the consumer within the later of fourteen (14)
days of such response or the conclusion of Notice Period If the IRS requests
the return of such tax refund amounts those funds shall be returned to the
IRS
B Within thirty (30) days of the request by a consumer with a
Covered Consumer Account that is made within the Consumer Redress
Period Defendant shall send the consumer a refund check by first class US
Mail postage prepaid unless a consumer requests to receive their funds via
another method made available by Defendant and the consumer completes
any necessary identity verification and activation processes within fourteen
Page 9of26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 9 of 32
days of such request Refund checks and amounts made available via
other options shall include such Covered Consumer Account balance and fees
charged to the consumer before activation of an account that have not
already been credited All payments to consumers hereunder shall be subject
to reasonable and appropriate fraud prevention procedures and NetSpend
may decline a consumer refund request if it has credible evidence that the
request is fraudulent or duplicative For any consumer who attempts to
assert a claim to an account as to which a claim has already has been
submitted Defendant shall direct the consumer to contact the FTC to seek
any redress
C Within 30 days after the conclusion of the Consumer Redress
Period (the Fee Payment Date) Defendant shall
1 Pay to the Commission thirteen million dollars
($13000000) reflecting fees charged by Defendant (the Fee Payment
Amount) provided however that the Fee Payment Amount shall be reduced
by the amount of any fees charged as of August 31 2016 that NetSpend
subsequent to that date (a) refunded to a consumer with a Covered Consumer
Account (b) credited to activated Covered Consumer Accounts or (c) returned
to the IRS as provided above A refund shall be deemed to have occurred on
Page 10 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 10 of 32
date when a check that includes the funds is mailed or a consumer is
granted access to the funds on the consumers account Payment to the
Commission must be made by electronic fund transfer in accordance with
instructions provided by a representative of the Commission To the extent
that the foregoing reductions exceed $13000000 then additional reductions
shall be applied to the amounts to be paid to the Commission pursuant to
Subsections IIID and E
2 Provide to counsel for the Commission a sworn written
report that details (a) the disposition by account of all funds made available
or refunded to Covered Consumer Accounts (b) all claims denied with respect
to Covered Consumer Accounts because of fraud or duplication (c) funds
submitted to the IRS and (d) all funds included in the Fee Payment Amount
including any reductions thereof
D On the Fee Payment Date Defendant shall also
1 Pay to the Commission an amount comprised of (a) fees
charged if any including account maintenance fees (also referred to as
account inactivity fees) and monthly or annual plan fees to a Covered
Consumer Account between September 1 2016 and the conclusion of the
Consumer Redress Period that were not (i) refunded (ii) credited to an
Page 11of26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 11 of 32
Covered Consumer Account or otherwise made available to the
consumer (iii) returned to the IRS or (iv) charged after funds were made
available by activation of a Covered Consumer Account at the request of the
consumer in which case such fees described in clause (i) - (iv) above shall be
deemed to be funds disposed of for purposes of this Order including
Subsection IIIF and (b) any sums retained by Defendant related to a
Covered Consumer Account after the conclusion of the escheatment period
applicable to the account
2 Provide to counsel for the Commission a sworn written
report that details the disposition by account of (a) all funds paid to the
Commission under Subsection IIIDl and (b) all Covered Consumer
Accounts that were activated or closed between September 1 2016 and the
conclusion of the Consumer Redress Period
E Beginning six months after the conclusion of the Consumer
Redress Period and every six months thereafter (the Six Month
Adjustment Dates) until all funds on deposit in Covered Consumer
Accounts as of the conclusion of the Consumer Redress Period are
distributed pursuant to the following adjustments or reductions (i) funds in
Covered Consumer Accounts are refunded held in activated accounts or
Page 12 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 12 of 32
made available to consumers (ii) funds in Covered Consumer
Accounts are paid to the FTC (iii) funds in Covered Consumer Accounts are
returned to the IRS (iv) funds in Covered Consumer Accounts are paid or
returned to any other party with a bona fide claim to such funds or (v) funds
in Covered Consumer Accounts are subject to initiation of the process of
escheat (the Covered Consumer Account Adjustments) Defendant shall
sixty (60) days after each Six Month Adjustment Date (the Six Month
Payment Date)
1 Pay to the Commission an amount comprised of (a) fees
charged if any including account maintenance fees (also referred to as
account inactivity fees) and monthly or annual plan fees to a Covered
Consumer Account during that six month period that were not (i) refunded
(ii) credited to an activated Covered Consumer Account or otherwise made
available to the consumer (iii) returned to the IRS or (iv) charged after funds
were made available by activation of a Covered Consumer Account at the
request of the consumer in which case such fees described in clauses (i) middot (iv)
above shall be deemed to be funds disposed of for purposes of this Order
including Subsection IIIF and (b) any sums retained by Defendant related to
a Covered Consumer Account after the conclusion of the escheatment period
Page 13 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 13 of 32
to the account The total sum of all of the payments on the Six
Month Payment Dates shall not exceed the amount of funds on deposit in
Covered Consumer Accounts as of the conclusion of the Consumer Redress
Period and each individual payment on a Six Month Payment Date shall not
exceed the amount of funds on deposit in Covered Consumer Accounts as of
the prior Six Month Adjustment Date after applying the Covered Consumer
Account Adjustments
2 Provide to counsel for the Commission a sworn written
report that details the disposition of the following by account (a) all funds
paid to the Commission under Subsection IIIE L (b) all Covered Consumer
Accounts that were activated or closed during that six month period (c) all
Covered Consumer Account Adjustments and (d) all funds that remain on
deposit in Covered Consumer Accounts after application of the Covered
Consumer Adjustments
F To the extent that any funds included in the monetary relief
identified in this Section that totals no less than fifty-three million dollars
($53000000) are not disposed of by operation of Subsections IIIA -IIIE
Defendant shall pay the amount not disposed of by operation of Subsections
IIIA -IIIE to the Commission sixty days after the last Six Month Payment
Page 14 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 14 of 32
G Defendant relinquishes dominion and all legal and equitable
right title and interest in all assets transferred to the FTC the IRS
consumers or any third-party pursuant to this Order and may not seek the
return of any assets
H The facts alleged in the Complaint will be taken as true
without further proof in any subsequent civil litigation by or on behalf of
the Commission to enforce its rights to any payment or monetary judgment
pursuant to this Order such as a claim of nondischargeability in any
bankruptcy case
I The facts alleged in the Complaint establish all elements
necessary to sustain an action by the Commission pursuant to Section
523(a)(2)(A) of the Bankruptcy Code 11 USC sect 523(a)(2)(A) and this
Order will have collateral estoppel effect for such purposes
J Defendants admissions in Subsections IIIHand IIII above are
not intended to be nor shall they be construed as admissions with respect to
any claim by any third party
K Defendant acknowledges that its Taxpayer Identification
Numbers (Social Security Numbers or Employer Identification Numbers)
Page 15 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 15 of 32
Defendant must submit to the Commission may be used for
collecting and reporting on any delinquent amount arising out of this Order
in accordance with 31 USC sect7701
L All money paid to the Commission pursuant to this Order may be
deposited into a fund administered by the Commission or its designee to be
used for equitable relief including consumer redress and any attendant
expenses for the administration of any redress fund If a representative of
the Commission decides that direct redress to consumers is wholly or
partially impracticable or money remains after redress is completed the
Commission may apply any remaining money for such other equitable relief
(including consumer information remedies) as it determines to be reasonably
related to Defendants practices alleged in the Complaint Any money not
used for such equitable relief is to be deposited to the US Treasury as
disgorgement Defendant has no right to challenge any actions the
Commission or its representatives may take pursuant to this Subsection
IV CUSTOMER INFORMATION
IT IS FURTHER ORDERED that Defendant Defendants officers
agents employees and attorneys and all other persons in active concert
or participation with any of them who receive actual notice of this Order
Page 16 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 16 of 32
acting directly or indirectly are permanently restrained and
enjoined from failing to provide customer information in its possession
custody or control that is sufficient to enable the Commission to efficiently
administer consumer redress including consumer name phone number
address other contact information account number and account balance or
other reasonably available information that the Commission requests to
effectuate consumer redress If a representative of the Commission requests
in writing any such information in Defendants possession custody or
control related to redress Defendant must provide it in the form prescribed
by the Commission within 14 business days
The Parties anticipate that consumers may make inquiries to
Defendant regarding consumer funds subject to this Order Defendant shall
maintain a record of such contacts including consumer contact information
and shall provide such records to the Commission as required in this Section
IV Following receipt of consumer inquiries that should properly be directed
to the Commission rather than Defendant Defendant shall direct the
consumer to contact the FTC at a number and address specified by the FTC
for this purpose
Page 17 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 17 of 32
ORDER ACKNOWLEDGMENTS
IT IS FURTHER ORDERED that Defendant obtains
acknowledgments of receipt of this Order
A Defendant within 7 days of entry of this Order must submit to
the Commission an acknowledgment of receipt of this Order sworn under
penalty of perjury
B For 5 years after entry of this Order Defendant must deliver
a copy of this Order to (I) all principals officers and directors (2) all
employees agents and representatives with authority to approve
advertising or marketing material on behalf of Defendant for any
Prepaid Product and all employees who supervise the formulation of
advertising and marketing material for any Prepaid Product and (3) any
business entity resulting from any change in structure as set forth in the
Section titled Compliance Reporting Delivery must occur within 7 days
of entry of this Order for current personnel For all others delivery must
occur before they assume their responsibilities
C From each individual or entity to which Defendant delivered
a copy of this Order Defendant must obtain within 30 days a signed
and dated acknowledgment of receipt of this Order (an Order
Acknowledgement) Page 18 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 18 of 32
COMPLIANCE REPORTING
IT IS FURTHER ORDERED that Defendant make timely
submissions to the Commission
A One year after entry of this Order Defendant must submit a
compliance report sworn under penalty of perjury Defendant must
1 identify the primary physical postal and email address
and telephone number as designated points of contact which
representatives of the Commission may use to communicate with Defendant
2 identify all of Defendants businesses by all of their
names telephone numbers and physical postal email and Internet
addresses
3 describe the activities of each business including the
goods and services offered and the means of advertising marketing and
sales
4 describe in detail whether and how Defendant is in
compliance with each Section of this Order and
5 provide a copy of each Order Acknowledgment obtained
pursuant to this Order unless previously submitted to the Commission
B For 20 years after entry of this Order Defendant must submit a
compliance notice sworn under penalty of perjury within 14 days of any
Page 19 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 19 of 32
in the following
1 any designated point of contact or
2 the structure of Defendant or any entity that Defendant
has any ownership interest in or controls directly or indirectly that may
affect compliance obligations arising under this Order including creation
merger sale or dissolution of the entity or any subsidiary parent or
affiliate that engages in any acts or practices subject to this Order
C Defendant must submit to the Commission notice of the filing
of any bankruptcy petition insolvency proceeding or similar proceeding by
or against Defendant within 14 days of its filing
D Any submission to the Commission required by this Order to be
sworn under penalty of perjury must be true and accurate and comply with
28 USC sect 1746 such as by concluding I declare under penalty of perjury
under the laws of the United States of America that the foregoing is true
and correct Executed on [date] and supplying the date signatorys full
name title (if applicable) and signature
E Unless otherwise directed by a Commission representative in
writing all submissions to the Commission pursuant to this Order must be
emailed to DEbriefftcgov or sent by overnight courier (not the US Postal
Service) to Associate Director for Enforcement Bureau of Consumer
Page 20 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 20 of 32
Federal Trade Commission 600 Pennsylvania Avenue NW
Washington DC 20580 The subject line must begin FTC v NetSpend
Corporation Xl 70006
VII RECORDKEEPING
IT IS FURTHER ORDERED that Defendant must create certain
records for 20 years after entry of the Order and retain each such record for
5 years Specifically Defendant must create and retain the following
records in connection with the advertisement marketing promotion
offering for sale sale management or servicing of any Prepaid Product
A accounting records showing the revenues from all such goods
or services sold
B personnel records of Defendant showing for each individual
providing services whether as an employee or otherwise that persons
name addresses telephone numbers job title or position dates of service
and (if applicable) the reason for termination
C records of all consumer complaints whether received directly
or indirectly related to access to funds which shall include but not be
limited to available consumer contact information date of complaint
source of complaint category of complaint and the outcome provided that
this Subparagraph shall apply only to consumer complaints related to
Page 21of26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 21 of 32
to funds received directly or indirectly from a consumer a federal or
state agency the Better Business Bureau State Attorneys General as
well as any consumer lawsuit
D all records necessary to demonstrate full compliance with each
provision of this Order including all submissions to the Commission
E a copy of each unique advertisement or other marketing
material created produced or approved by Defendant and
F records of blocks that restrict consumer access to Prepaid
Products requests by consumers to activate and register Prepaid
Products when submitted directly to Defendant or when records of such
requests are available to Defendant requests by consumers to lift blocks
on Prepaid Products requests by consumers for closure of Prepaid Product
accounts and any subsequent disbursements of funds to consumers
consumer notifications of account errors and disbursements of provisional
credits Provided however that to the extent Defendant does not
maintain records as provided in this Subsection in the ordinary course of
business as of the date of this Order and must implement new record
keeping policies systems or procedures to create them Defendant shall
implement such policies systems or procedures within 90 days after the
date of this Order Provided further that Defendant shall not be required
Page 22 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 22 of 32
create or maintain any record identified in this Subsection if Defendant
demonstrates that it is prohibited by banking law or regulation from
creating or maintaining such record
VIII COMPLIANCE MONITORING
IT IS FURTHER ORDERED that for the purpose of monitoring
Defendants compliance with this Order and any failure to transfer any
assets as required by this Order
A Within 14 days of receipt of a written request from a
representative of the Commission Defendant must submit additional
compliance reports or other requested information which must be sworn
under penalty of perjury and appear for depositions and produce
documents for inspection and copying The Commission is also authorized
to obtain discovery without further leave of court using any of the
procedures prescribed by Federal Rules of Civil Procedure 29 30 (including
telephonic depositions) 31 33 34 36 45 and 69
B For matters concerning this Order the Commission is
authorized to communicate directly with Defendant Defendant must
permit representatives of the Commission to interview any employee or
Page 23 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 23 of 32
person affiliated with Defendant who has agreed to such an
interview The person interviewed may have counsel present
C The Commission may use all other lawful means including
posing through its representatives as consumers suppliers or other
individuals or entities to Defendant or any individual or entity affiliated
with Defendant without the necessity of identification or prior notice
Nothing in this Order limits the Commissions lawful use of compulsory
process pursuant to Sections 9 and 20 of the FTC Act 15 USC sectsect 49
57b-l
IX RETENTION OF JURISDICTION
IT IS FURTHER ORDERED that this Court retains jurisdiction of this
matter for purposes of construction modification and enforcement of this
Order
SO ORDERED this ___ day of ____________ _ 2017
Amy Totenberg UNITED STATES DISTRICT JUDGE
Page 24 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 24 of 32
STIPULATED AND AGREED FOR
PLAINTIFF
FEDERAL TRADE COJM11ISSION
Dated jQH~ S ( 2-6 - - -=--=---------------- ------
7
Mark By fe~~
Glassman Adam M Wesolowski Federal Trade Commission 600 Pennsylvania Avenue NW Mailstop CC-10232 Washington DC 20580 Email mglassmanftcgov awesolowskiftcgov Phone (202) 326-2826 (Glassman) (202) 326-3068 (Wesolowski) Fax (202) 326-3768
By 12rdf-d-cgtltd ~ Robin L Rock (Bar No 629532) Federal Trade Commission 225 Peachtree Street NE Suite 1500 Atlanta GA 30303 Email rrockftcgov Phone (404) 656-1368 Fax (404) 656-1379
Attorneys for Plaintiff FEDERAL TRADE COMMISSION
Page 25 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 25 of 32
DE~gSPEND CORPORATION
Diane By~
McCartnev fv~~
- d Vice President Compliance NETSPEND CORPORATION
MORRISON amp FOERSTER LLP
Steven JVI Kaufmann Natalie Fleming ~olen 2000 Pennsylvania Avenue Vv ashington DC 20006 Telephone (212) 468middot8000 Ekfl 11fm ann~mofocom nilemi]1g_g_ol~n(~mofoco1y~
Sarah N Davis 425 Market Street San Francisco California 94105-2482 Telephone (415) 268-7000 Sarah Do yi s(ahn ofo com
By---~-=-~+----=-1i__~___ Michael B Terry Georgia Bar No 702582 BONDURANl MIXSON amp ELMORE LLP 1201 West Peachtree Street NV Suite 3900 Atlanta GA 30309 Email er1middotvbm elaw99nl (404) 881 middot4100
Attorneys for Defendant NetSpend Corporation
Page 26 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 26 of 32
Case 116-cv-04203-AT Document 41 Filed 033117 Page 27 of 32
Appendix A-1
[ON NETSPEND CORPORATION LETTERHEAD]
IMPORTANT NOTICE TO REMOVE NETSPEND CARD MATERIALS TO COMPLY WITH FEDERAL COURT ORDER
[insert addressee name][insert addressee address]
Dear [Third Party]
In response to a settlement with the Federal Trade Commission NetSpend Corporation (NetSpend) has agreed to a court order prohibiting the use of certain claims in marketing and other materials In accordance with this order NetSpend directs that within sixty (60) days of the date of this letter you stop using any existing NetSpend materials that state that NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval Attached hereto are copies photographs or images of sample materials subject to removal NetSpend willmake revised materials available to you shortly if it has not already provided such materials
Should you have any questions about compliance with this notification please contact [insert NetSpend contact person] Further information about the order can be obtained by visiting wwwftcgov and searching for ldquoNetSpendrdquo
Sincerely
[Name][Title]NetSpend Corporation
Case 116-cv-04203-AT Document 41 Filed 033117 Page 28 of 32
Appendix A-2
[ON NETSPEND CORPORATION LETTERHEAD]
IMPORTANT NOTICE TO UPDATE NETSPEND CARD MATERIALS TO COMPLY WITH FEDERAL COURT ORDER
[insert addressee name][insert addressee address]
Dear [Third Party]
In response to a settlement with the Federal Trade Commission NetSpend Corporation (NetSpend) has agreed to a court order prohibiting the use of certain claims in marketing and other materials In accordance with this order NetSpend [as applicable ndash as successor-in-interest to Skylight Financial Inc] directs that you affix corrective stickers to any existing NetSpend materials that state NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval
Enclosed with this letter are corrective stickers stating ldquoYou must meet identity verification requirements to activate and use the cardrdquo These stickers must be placed on the NetSpend materials in close proximity to such statements that NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval If the foregoingstatements are contained within an envelope or package that is already sealed then the sticker shall be placed in a prominent position on the outside of the envelope or package Attached also are copies photographs or images of sample materials illustrating the required correction
Should you have any questions about compliance with this notification please contact [insert NetSpend contact person] Further information about the order can be obtained by visiting wwwftcgov and searching for ldquoNetSpendrdquo
Sincerely
[Name][Title]NetSpend Corporation
Case 116-cv-04203-AT Document 41 Filed 033117 Page 29 of 32
Appendix B
Subject line of e-mail NetSpend [or such other NetSpend brand eg PayPal] Card Refunds Available
You may be eligible for a refund related to your [Branded Name (as applicable)] prepaid card [managed by NetSpend (as necessary where a branded name is used)] Under a settlement with the Federal Trade Commission NetSpend will refund certain customers
If you wish to receive your money via check complete this personalized request form [REQUEST FORM (Link to Personalized Survey per customer) Samplehttpswwwnetspendcomaccountcs surveymid= 1052492523ampsid=601] by ltDate of End of Redress Periodgt
After ltDate of End of Redress Periodgt you will need to contact both the FTC and NetSpend to receive your funds
NetSpend will mail checks within 30 days of receiving a valid request form
If instead of getting a check by filling out the form linked above you would like us to send your refund to an existing NetSpend card please contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 You may be required to submit identification documents to NetSpend to activate your card and access your money
For more information about the program visit wwwftcgovNetSpend If youhave any problems receiving your funds please let the FTC know by emailing NetSpendftcgov
Online Check Request Form
Under the terms of NetSpendrsquos settlement with the Federal Trade Commission [link to wwwftcgovNetSpend] NetSpend will refund certain customers who loaded money on cards
How you would like to receive your money
Case 116-cv-04203-AT Document 41 Filed 033117 Page 30 of 32
_____ Close my account and mail a check to the address on my account
_____ Close my account and mail a check to another address (please enter your new address below)
_____I would like to contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 to receive my funds via a NetSpend card I understand that with this option I may be required to submit identification documents to NetSpend to activate my card and access my money
New Address Street
City
State
Zip
Phone
Finish
Case 116-cv-04203-AT Document 41 Filed 033117 Page 31 of 32
Subject line of mailed letter NetSpend [or applicable NetSpend brand eg PayPal] Card Refunds Available
You may be eligible for a refund related to your [Brand Name (as applicable)] prepaid card [managed by NetSpend (as necessary where a branded name is used)] Under a settlement with the Federal Trade Commission NetSpend willrefund certain customers
If you wish to receive your money via check complete the personalized formbelow by ltDate of End of Redress Periodgt and return it to NetSpend in the enclosed envelope If you received a refund notice from NetSpend by email you may instead go to the personalized request form linked in the email to request your refund
After ltDate of End of Redress Periodgt you will need to contact both the FTC and NetSpend to receive your funds
NetSpend will mail checks within 30 days of receiving a valid request form
For more information about the program visit wwwftcgovNetSpend If youhave any problems receiving your funds please let the FTC know by emailing NetSpendftcgov
Reference Number _________ Name ltFirst Namegt ltLast Namegt Account Address ltStreetgt ltCitygt ltStategt ltZipgt
Check Request
_____ Close my account and mail a check to the address on my account
_____ Close my account and mail a check to another address (please enter your new address below)
Street
City
Case 116-cv-04203-AT Document 41 Filed 033117 Page 32 of 32
State
Zip
Phone
_____I would like to contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 to receive my funds via a NetSpend card I understand that with this option I may be required to submit identification documents to NetSpend to activate my card and access my money
Enclosure Envelope addressed to NetSpend with postage prepaid
days of such request Refund checks and amounts made available via
other options shall include such Covered Consumer Account balance and fees
charged to the consumer before activation of an account that have not
already been credited All payments to consumers hereunder shall be subject
to reasonable and appropriate fraud prevention procedures and NetSpend
may decline a consumer refund request if it has credible evidence that the
request is fraudulent or duplicative For any consumer who attempts to
assert a claim to an account as to which a claim has already has been
submitted Defendant shall direct the consumer to contact the FTC to seek
any redress
C Within 30 days after the conclusion of the Consumer Redress
Period (the Fee Payment Date) Defendant shall
1 Pay to the Commission thirteen million dollars
($13000000) reflecting fees charged by Defendant (the Fee Payment
Amount) provided however that the Fee Payment Amount shall be reduced
by the amount of any fees charged as of August 31 2016 that NetSpend
subsequent to that date (a) refunded to a consumer with a Covered Consumer
Account (b) credited to activated Covered Consumer Accounts or (c) returned
to the IRS as provided above A refund shall be deemed to have occurred on
Page 10 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 10 of 32
date when a check that includes the funds is mailed or a consumer is
granted access to the funds on the consumers account Payment to the
Commission must be made by electronic fund transfer in accordance with
instructions provided by a representative of the Commission To the extent
that the foregoing reductions exceed $13000000 then additional reductions
shall be applied to the amounts to be paid to the Commission pursuant to
Subsections IIID and E
2 Provide to counsel for the Commission a sworn written
report that details (a) the disposition by account of all funds made available
or refunded to Covered Consumer Accounts (b) all claims denied with respect
to Covered Consumer Accounts because of fraud or duplication (c) funds
submitted to the IRS and (d) all funds included in the Fee Payment Amount
including any reductions thereof
D On the Fee Payment Date Defendant shall also
1 Pay to the Commission an amount comprised of (a) fees
charged if any including account maintenance fees (also referred to as
account inactivity fees) and monthly or annual plan fees to a Covered
Consumer Account between September 1 2016 and the conclusion of the
Consumer Redress Period that were not (i) refunded (ii) credited to an
Page 11of26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 11 of 32
Covered Consumer Account or otherwise made available to the
consumer (iii) returned to the IRS or (iv) charged after funds were made
available by activation of a Covered Consumer Account at the request of the
consumer in which case such fees described in clause (i) - (iv) above shall be
deemed to be funds disposed of for purposes of this Order including
Subsection IIIF and (b) any sums retained by Defendant related to a
Covered Consumer Account after the conclusion of the escheatment period
applicable to the account
2 Provide to counsel for the Commission a sworn written
report that details the disposition by account of (a) all funds paid to the
Commission under Subsection IIIDl and (b) all Covered Consumer
Accounts that were activated or closed between September 1 2016 and the
conclusion of the Consumer Redress Period
E Beginning six months after the conclusion of the Consumer
Redress Period and every six months thereafter (the Six Month
Adjustment Dates) until all funds on deposit in Covered Consumer
Accounts as of the conclusion of the Consumer Redress Period are
distributed pursuant to the following adjustments or reductions (i) funds in
Covered Consumer Accounts are refunded held in activated accounts or
Page 12 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 12 of 32
made available to consumers (ii) funds in Covered Consumer
Accounts are paid to the FTC (iii) funds in Covered Consumer Accounts are
returned to the IRS (iv) funds in Covered Consumer Accounts are paid or
returned to any other party with a bona fide claim to such funds or (v) funds
in Covered Consumer Accounts are subject to initiation of the process of
escheat (the Covered Consumer Account Adjustments) Defendant shall
sixty (60) days after each Six Month Adjustment Date (the Six Month
Payment Date)
1 Pay to the Commission an amount comprised of (a) fees
charged if any including account maintenance fees (also referred to as
account inactivity fees) and monthly or annual plan fees to a Covered
Consumer Account during that six month period that were not (i) refunded
(ii) credited to an activated Covered Consumer Account or otherwise made
available to the consumer (iii) returned to the IRS or (iv) charged after funds
were made available by activation of a Covered Consumer Account at the
request of the consumer in which case such fees described in clauses (i) middot (iv)
above shall be deemed to be funds disposed of for purposes of this Order
including Subsection IIIF and (b) any sums retained by Defendant related to
a Covered Consumer Account after the conclusion of the escheatment period
Page 13 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 13 of 32
to the account The total sum of all of the payments on the Six
Month Payment Dates shall not exceed the amount of funds on deposit in
Covered Consumer Accounts as of the conclusion of the Consumer Redress
Period and each individual payment on a Six Month Payment Date shall not
exceed the amount of funds on deposit in Covered Consumer Accounts as of
the prior Six Month Adjustment Date after applying the Covered Consumer
Account Adjustments
2 Provide to counsel for the Commission a sworn written
report that details the disposition of the following by account (a) all funds
paid to the Commission under Subsection IIIE L (b) all Covered Consumer
Accounts that were activated or closed during that six month period (c) all
Covered Consumer Account Adjustments and (d) all funds that remain on
deposit in Covered Consumer Accounts after application of the Covered
Consumer Adjustments
F To the extent that any funds included in the monetary relief
identified in this Section that totals no less than fifty-three million dollars
($53000000) are not disposed of by operation of Subsections IIIA -IIIE
Defendant shall pay the amount not disposed of by operation of Subsections
IIIA -IIIE to the Commission sixty days after the last Six Month Payment
Page 14 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 14 of 32
G Defendant relinquishes dominion and all legal and equitable
right title and interest in all assets transferred to the FTC the IRS
consumers or any third-party pursuant to this Order and may not seek the
return of any assets
H The facts alleged in the Complaint will be taken as true
without further proof in any subsequent civil litigation by or on behalf of
the Commission to enforce its rights to any payment or monetary judgment
pursuant to this Order such as a claim of nondischargeability in any
bankruptcy case
I The facts alleged in the Complaint establish all elements
necessary to sustain an action by the Commission pursuant to Section
523(a)(2)(A) of the Bankruptcy Code 11 USC sect 523(a)(2)(A) and this
Order will have collateral estoppel effect for such purposes
J Defendants admissions in Subsections IIIHand IIII above are
not intended to be nor shall they be construed as admissions with respect to
any claim by any third party
K Defendant acknowledges that its Taxpayer Identification
Numbers (Social Security Numbers or Employer Identification Numbers)
Page 15 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 15 of 32
Defendant must submit to the Commission may be used for
collecting and reporting on any delinquent amount arising out of this Order
in accordance with 31 USC sect7701
L All money paid to the Commission pursuant to this Order may be
deposited into a fund administered by the Commission or its designee to be
used for equitable relief including consumer redress and any attendant
expenses for the administration of any redress fund If a representative of
the Commission decides that direct redress to consumers is wholly or
partially impracticable or money remains after redress is completed the
Commission may apply any remaining money for such other equitable relief
(including consumer information remedies) as it determines to be reasonably
related to Defendants practices alleged in the Complaint Any money not
used for such equitable relief is to be deposited to the US Treasury as
disgorgement Defendant has no right to challenge any actions the
Commission or its representatives may take pursuant to this Subsection
IV CUSTOMER INFORMATION
IT IS FURTHER ORDERED that Defendant Defendants officers
agents employees and attorneys and all other persons in active concert
or participation with any of them who receive actual notice of this Order
Page 16 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 16 of 32
acting directly or indirectly are permanently restrained and
enjoined from failing to provide customer information in its possession
custody or control that is sufficient to enable the Commission to efficiently
administer consumer redress including consumer name phone number
address other contact information account number and account balance or
other reasonably available information that the Commission requests to
effectuate consumer redress If a representative of the Commission requests
in writing any such information in Defendants possession custody or
control related to redress Defendant must provide it in the form prescribed
by the Commission within 14 business days
The Parties anticipate that consumers may make inquiries to
Defendant regarding consumer funds subject to this Order Defendant shall
maintain a record of such contacts including consumer contact information
and shall provide such records to the Commission as required in this Section
IV Following receipt of consumer inquiries that should properly be directed
to the Commission rather than Defendant Defendant shall direct the
consumer to contact the FTC at a number and address specified by the FTC
for this purpose
Page 17 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 17 of 32
ORDER ACKNOWLEDGMENTS
IT IS FURTHER ORDERED that Defendant obtains
acknowledgments of receipt of this Order
A Defendant within 7 days of entry of this Order must submit to
the Commission an acknowledgment of receipt of this Order sworn under
penalty of perjury
B For 5 years after entry of this Order Defendant must deliver
a copy of this Order to (I) all principals officers and directors (2) all
employees agents and representatives with authority to approve
advertising or marketing material on behalf of Defendant for any
Prepaid Product and all employees who supervise the formulation of
advertising and marketing material for any Prepaid Product and (3) any
business entity resulting from any change in structure as set forth in the
Section titled Compliance Reporting Delivery must occur within 7 days
of entry of this Order for current personnel For all others delivery must
occur before they assume their responsibilities
C From each individual or entity to which Defendant delivered
a copy of this Order Defendant must obtain within 30 days a signed
and dated acknowledgment of receipt of this Order (an Order
Acknowledgement) Page 18 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 18 of 32
COMPLIANCE REPORTING
IT IS FURTHER ORDERED that Defendant make timely
submissions to the Commission
A One year after entry of this Order Defendant must submit a
compliance report sworn under penalty of perjury Defendant must
1 identify the primary physical postal and email address
and telephone number as designated points of contact which
representatives of the Commission may use to communicate with Defendant
2 identify all of Defendants businesses by all of their
names telephone numbers and physical postal email and Internet
addresses
3 describe the activities of each business including the
goods and services offered and the means of advertising marketing and
sales
4 describe in detail whether and how Defendant is in
compliance with each Section of this Order and
5 provide a copy of each Order Acknowledgment obtained
pursuant to this Order unless previously submitted to the Commission
B For 20 years after entry of this Order Defendant must submit a
compliance notice sworn under penalty of perjury within 14 days of any
Page 19 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 19 of 32
in the following
1 any designated point of contact or
2 the structure of Defendant or any entity that Defendant
has any ownership interest in or controls directly or indirectly that may
affect compliance obligations arising under this Order including creation
merger sale or dissolution of the entity or any subsidiary parent or
affiliate that engages in any acts or practices subject to this Order
C Defendant must submit to the Commission notice of the filing
of any bankruptcy petition insolvency proceeding or similar proceeding by
or against Defendant within 14 days of its filing
D Any submission to the Commission required by this Order to be
sworn under penalty of perjury must be true and accurate and comply with
28 USC sect 1746 such as by concluding I declare under penalty of perjury
under the laws of the United States of America that the foregoing is true
and correct Executed on [date] and supplying the date signatorys full
name title (if applicable) and signature
E Unless otherwise directed by a Commission representative in
writing all submissions to the Commission pursuant to this Order must be
emailed to DEbriefftcgov or sent by overnight courier (not the US Postal
Service) to Associate Director for Enforcement Bureau of Consumer
Page 20 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 20 of 32
Federal Trade Commission 600 Pennsylvania Avenue NW
Washington DC 20580 The subject line must begin FTC v NetSpend
Corporation Xl 70006
VII RECORDKEEPING
IT IS FURTHER ORDERED that Defendant must create certain
records for 20 years after entry of the Order and retain each such record for
5 years Specifically Defendant must create and retain the following
records in connection with the advertisement marketing promotion
offering for sale sale management or servicing of any Prepaid Product
A accounting records showing the revenues from all such goods
or services sold
B personnel records of Defendant showing for each individual
providing services whether as an employee or otherwise that persons
name addresses telephone numbers job title or position dates of service
and (if applicable) the reason for termination
C records of all consumer complaints whether received directly
or indirectly related to access to funds which shall include but not be
limited to available consumer contact information date of complaint
source of complaint category of complaint and the outcome provided that
this Subparagraph shall apply only to consumer complaints related to
Page 21of26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 21 of 32
to funds received directly or indirectly from a consumer a federal or
state agency the Better Business Bureau State Attorneys General as
well as any consumer lawsuit
D all records necessary to demonstrate full compliance with each
provision of this Order including all submissions to the Commission
E a copy of each unique advertisement or other marketing
material created produced or approved by Defendant and
F records of blocks that restrict consumer access to Prepaid
Products requests by consumers to activate and register Prepaid
Products when submitted directly to Defendant or when records of such
requests are available to Defendant requests by consumers to lift blocks
on Prepaid Products requests by consumers for closure of Prepaid Product
accounts and any subsequent disbursements of funds to consumers
consumer notifications of account errors and disbursements of provisional
credits Provided however that to the extent Defendant does not
maintain records as provided in this Subsection in the ordinary course of
business as of the date of this Order and must implement new record
keeping policies systems or procedures to create them Defendant shall
implement such policies systems or procedures within 90 days after the
date of this Order Provided further that Defendant shall not be required
Page 22 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 22 of 32
create or maintain any record identified in this Subsection if Defendant
demonstrates that it is prohibited by banking law or regulation from
creating or maintaining such record
VIII COMPLIANCE MONITORING
IT IS FURTHER ORDERED that for the purpose of monitoring
Defendants compliance with this Order and any failure to transfer any
assets as required by this Order
A Within 14 days of receipt of a written request from a
representative of the Commission Defendant must submit additional
compliance reports or other requested information which must be sworn
under penalty of perjury and appear for depositions and produce
documents for inspection and copying The Commission is also authorized
to obtain discovery without further leave of court using any of the
procedures prescribed by Federal Rules of Civil Procedure 29 30 (including
telephonic depositions) 31 33 34 36 45 and 69
B For matters concerning this Order the Commission is
authorized to communicate directly with Defendant Defendant must
permit representatives of the Commission to interview any employee or
Page 23 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 23 of 32
person affiliated with Defendant who has agreed to such an
interview The person interviewed may have counsel present
C The Commission may use all other lawful means including
posing through its representatives as consumers suppliers or other
individuals or entities to Defendant or any individual or entity affiliated
with Defendant without the necessity of identification or prior notice
Nothing in this Order limits the Commissions lawful use of compulsory
process pursuant to Sections 9 and 20 of the FTC Act 15 USC sectsect 49
57b-l
IX RETENTION OF JURISDICTION
IT IS FURTHER ORDERED that this Court retains jurisdiction of this
matter for purposes of construction modification and enforcement of this
Order
SO ORDERED this ___ day of ____________ _ 2017
Amy Totenberg UNITED STATES DISTRICT JUDGE
Page 24 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 24 of 32
STIPULATED AND AGREED FOR
PLAINTIFF
FEDERAL TRADE COJM11ISSION
Dated jQH~ S ( 2-6 - - -=--=---------------- ------
7
Mark By fe~~
Glassman Adam M Wesolowski Federal Trade Commission 600 Pennsylvania Avenue NW Mailstop CC-10232 Washington DC 20580 Email mglassmanftcgov awesolowskiftcgov Phone (202) 326-2826 (Glassman) (202) 326-3068 (Wesolowski) Fax (202) 326-3768
By 12rdf-d-cgtltd ~ Robin L Rock (Bar No 629532) Federal Trade Commission 225 Peachtree Street NE Suite 1500 Atlanta GA 30303 Email rrockftcgov Phone (404) 656-1368 Fax (404) 656-1379
Attorneys for Plaintiff FEDERAL TRADE COMMISSION
Page 25 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 25 of 32
DE~gSPEND CORPORATION
Diane By~
McCartnev fv~~
- d Vice President Compliance NETSPEND CORPORATION
MORRISON amp FOERSTER LLP
Steven JVI Kaufmann Natalie Fleming ~olen 2000 Pennsylvania Avenue Vv ashington DC 20006 Telephone (212) 468middot8000 Ekfl 11fm ann~mofocom nilemi]1g_g_ol~n(~mofoco1y~
Sarah N Davis 425 Market Street San Francisco California 94105-2482 Telephone (415) 268-7000 Sarah Do yi s(ahn ofo com
By---~-=-~+----=-1i__~___ Michael B Terry Georgia Bar No 702582 BONDURANl MIXSON amp ELMORE LLP 1201 West Peachtree Street NV Suite 3900 Atlanta GA 30309 Email er1middotvbm elaw99nl (404) 881 middot4100
Attorneys for Defendant NetSpend Corporation
Page 26 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 26 of 32
Case 116-cv-04203-AT Document 41 Filed 033117 Page 27 of 32
Appendix A-1
[ON NETSPEND CORPORATION LETTERHEAD]
IMPORTANT NOTICE TO REMOVE NETSPEND CARD MATERIALS TO COMPLY WITH FEDERAL COURT ORDER
[insert addressee name][insert addressee address]
Dear [Third Party]
In response to a settlement with the Federal Trade Commission NetSpend Corporation (NetSpend) has agreed to a court order prohibiting the use of certain claims in marketing and other materials In accordance with this order NetSpend directs that within sixty (60) days of the date of this letter you stop using any existing NetSpend materials that state that NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval Attached hereto are copies photographs or images of sample materials subject to removal NetSpend willmake revised materials available to you shortly if it has not already provided such materials
Should you have any questions about compliance with this notification please contact [insert NetSpend contact person] Further information about the order can be obtained by visiting wwwftcgov and searching for ldquoNetSpendrdquo
Sincerely
[Name][Title]NetSpend Corporation
Case 116-cv-04203-AT Document 41 Filed 033117 Page 28 of 32
Appendix A-2
[ON NETSPEND CORPORATION LETTERHEAD]
IMPORTANT NOTICE TO UPDATE NETSPEND CARD MATERIALS TO COMPLY WITH FEDERAL COURT ORDER
[insert addressee name][insert addressee address]
Dear [Third Party]
In response to a settlement with the Federal Trade Commission NetSpend Corporation (NetSpend) has agreed to a court order prohibiting the use of certain claims in marketing and other materials In accordance with this order NetSpend [as applicable ndash as successor-in-interest to Skylight Financial Inc] directs that you affix corrective stickers to any existing NetSpend materials that state NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval
Enclosed with this letter are corrective stickers stating ldquoYou must meet identity verification requirements to activate and use the cardrdquo These stickers must be placed on the NetSpend materials in close proximity to such statements that NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval If the foregoingstatements are contained within an envelope or package that is already sealed then the sticker shall be placed in a prominent position on the outside of the envelope or package Attached also are copies photographs or images of sample materials illustrating the required correction
Should you have any questions about compliance with this notification please contact [insert NetSpend contact person] Further information about the order can be obtained by visiting wwwftcgov and searching for ldquoNetSpendrdquo
Sincerely
[Name][Title]NetSpend Corporation
Case 116-cv-04203-AT Document 41 Filed 033117 Page 29 of 32
Appendix B
Subject line of e-mail NetSpend [or such other NetSpend brand eg PayPal] Card Refunds Available
You may be eligible for a refund related to your [Branded Name (as applicable)] prepaid card [managed by NetSpend (as necessary where a branded name is used)] Under a settlement with the Federal Trade Commission NetSpend will refund certain customers
If you wish to receive your money via check complete this personalized request form [REQUEST FORM (Link to Personalized Survey per customer) Samplehttpswwwnetspendcomaccountcs surveymid= 1052492523ampsid=601] by ltDate of End of Redress Periodgt
After ltDate of End of Redress Periodgt you will need to contact both the FTC and NetSpend to receive your funds
NetSpend will mail checks within 30 days of receiving a valid request form
If instead of getting a check by filling out the form linked above you would like us to send your refund to an existing NetSpend card please contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 You may be required to submit identification documents to NetSpend to activate your card and access your money
For more information about the program visit wwwftcgovNetSpend If youhave any problems receiving your funds please let the FTC know by emailing NetSpendftcgov
Online Check Request Form
Under the terms of NetSpendrsquos settlement with the Federal Trade Commission [link to wwwftcgovNetSpend] NetSpend will refund certain customers who loaded money on cards
How you would like to receive your money
Case 116-cv-04203-AT Document 41 Filed 033117 Page 30 of 32
_____ Close my account and mail a check to the address on my account
_____ Close my account and mail a check to another address (please enter your new address below)
_____I would like to contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 to receive my funds via a NetSpend card I understand that with this option I may be required to submit identification documents to NetSpend to activate my card and access my money
New Address Street
City
State
Zip
Phone
Finish
Case 116-cv-04203-AT Document 41 Filed 033117 Page 31 of 32
Subject line of mailed letter NetSpend [or applicable NetSpend brand eg PayPal] Card Refunds Available
You may be eligible for a refund related to your [Brand Name (as applicable)] prepaid card [managed by NetSpend (as necessary where a branded name is used)] Under a settlement with the Federal Trade Commission NetSpend willrefund certain customers
If you wish to receive your money via check complete the personalized formbelow by ltDate of End of Redress Periodgt and return it to NetSpend in the enclosed envelope If you received a refund notice from NetSpend by email you may instead go to the personalized request form linked in the email to request your refund
After ltDate of End of Redress Periodgt you will need to contact both the FTC and NetSpend to receive your funds
NetSpend will mail checks within 30 days of receiving a valid request form
For more information about the program visit wwwftcgovNetSpend If youhave any problems receiving your funds please let the FTC know by emailing NetSpendftcgov
Reference Number _________ Name ltFirst Namegt ltLast Namegt Account Address ltStreetgt ltCitygt ltStategt ltZipgt
Check Request
_____ Close my account and mail a check to the address on my account
_____ Close my account and mail a check to another address (please enter your new address below)
Street
City
Case 116-cv-04203-AT Document 41 Filed 033117 Page 32 of 32
State
Zip
Phone
_____I would like to contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 to receive my funds via a NetSpend card I understand that with this option I may be required to submit identification documents to NetSpend to activate my card and access my money
Enclosure Envelope addressed to NetSpend with postage prepaid
date when a check that includes the funds is mailed or a consumer is
granted access to the funds on the consumers account Payment to the
Commission must be made by electronic fund transfer in accordance with
instructions provided by a representative of the Commission To the extent
that the foregoing reductions exceed $13000000 then additional reductions
shall be applied to the amounts to be paid to the Commission pursuant to
Subsections IIID and E
2 Provide to counsel for the Commission a sworn written
report that details (a) the disposition by account of all funds made available
or refunded to Covered Consumer Accounts (b) all claims denied with respect
to Covered Consumer Accounts because of fraud or duplication (c) funds
submitted to the IRS and (d) all funds included in the Fee Payment Amount
including any reductions thereof
D On the Fee Payment Date Defendant shall also
1 Pay to the Commission an amount comprised of (a) fees
charged if any including account maintenance fees (also referred to as
account inactivity fees) and monthly or annual plan fees to a Covered
Consumer Account between September 1 2016 and the conclusion of the
Consumer Redress Period that were not (i) refunded (ii) credited to an
Page 11of26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 11 of 32
Covered Consumer Account or otherwise made available to the
consumer (iii) returned to the IRS or (iv) charged after funds were made
available by activation of a Covered Consumer Account at the request of the
consumer in which case such fees described in clause (i) - (iv) above shall be
deemed to be funds disposed of for purposes of this Order including
Subsection IIIF and (b) any sums retained by Defendant related to a
Covered Consumer Account after the conclusion of the escheatment period
applicable to the account
2 Provide to counsel for the Commission a sworn written
report that details the disposition by account of (a) all funds paid to the
Commission under Subsection IIIDl and (b) all Covered Consumer
Accounts that were activated or closed between September 1 2016 and the
conclusion of the Consumer Redress Period
E Beginning six months after the conclusion of the Consumer
Redress Period and every six months thereafter (the Six Month
Adjustment Dates) until all funds on deposit in Covered Consumer
Accounts as of the conclusion of the Consumer Redress Period are
distributed pursuant to the following adjustments or reductions (i) funds in
Covered Consumer Accounts are refunded held in activated accounts or
Page 12 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 12 of 32
made available to consumers (ii) funds in Covered Consumer
Accounts are paid to the FTC (iii) funds in Covered Consumer Accounts are
returned to the IRS (iv) funds in Covered Consumer Accounts are paid or
returned to any other party with a bona fide claim to such funds or (v) funds
in Covered Consumer Accounts are subject to initiation of the process of
escheat (the Covered Consumer Account Adjustments) Defendant shall
sixty (60) days after each Six Month Adjustment Date (the Six Month
Payment Date)
1 Pay to the Commission an amount comprised of (a) fees
charged if any including account maintenance fees (also referred to as
account inactivity fees) and monthly or annual plan fees to a Covered
Consumer Account during that six month period that were not (i) refunded
(ii) credited to an activated Covered Consumer Account or otherwise made
available to the consumer (iii) returned to the IRS or (iv) charged after funds
were made available by activation of a Covered Consumer Account at the
request of the consumer in which case such fees described in clauses (i) middot (iv)
above shall be deemed to be funds disposed of for purposes of this Order
including Subsection IIIF and (b) any sums retained by Defendant related to
a Covered Consumer Account after the conclusion of the escheatment period
Page 13 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 13 of 32
to the account The total sum of all of the payments on the Six
Month Payment Dates shall not exceed the amount of funds on deposit in
Covered Consumer Accounts as of the conclusion of the Consumer Redress
Period and each individual payment on a Six Month Payment Date shall not
exceed the amount of funds on deposit in Covered Consumer Accounts as of
the prior Six Month Adjustment Date after applying the Covered Consumer
Account Adjustments
2 Provide to counsel for the Commission a sworn written
report that details the disposition of the following by account (a) all funds
paid to the Commission under Subsection IIIE L (b) all Covered Consumer
Accounts that were activated or closed during that six month period (c) all
Covered Consumer Account Adjustments and (d) all funds that remain on
deposit in Covered Consumer Accounts after application of the Covered
Consumer Adjustments
F To the extent that any funds included in the monetary relief
identified in this Section that totals no less than fifty-three million dollars
($53000000) are not disposed of by operation of Subsections IIIA -IIIE
Defendant shall pay the amount not disposed of by operation of Subsections
IIIA -IIIE to the Commission sixty days after the last Six Month Payment
Page 14 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 14 of 32
G Defendant relinquishes dominion and all legal and equitable
right title and interest in all assets transferred to the FTC the IRS
consumers or any third-party pursuant to this Order and may not seek the
return of any assets
H The facts alleged in the Complaint will be taken as true
without further proof in any subsequent civil litigation by or on behalf of
the Commission to enforce its rights to any payment or monetary judgment
pursuant to this Order such as a claim of nondischargeability in any
bankruptcy case
I The facts alleged in the Complaint establish all elements
necessary to sustain an action by the Commission pursuant to Section
523(a)(2)(A) of the Bankruptcy Code 11 USC sect 523(a)(2)(A) and this
Order will have collateral estoppel effect for such purposes
J Defendants admissions in Subsections IIIHand IIII above are
not intended to be nor shall they be construed as admissions with respect to
any claim by any third party
K Defendant acknowledges that its Taxpayer Identification
Numbers (Social Security Numbers or Employer Identification Numbers)
Page 15 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 15 of 32
Defendant must submit to the Commission may be used for
collecting and reporting on any delinquent amount arising out of this Order
in accordance with 31 USC sect7701
L All money paid to the Commission pursuant to this Order may be
deposited into a fund administered by the Commission or its designee to be
used for equitable relief including consumer redress and any attendant
expenses for the administration of any redress fund If a representative of
the Commission decides that direct redress to consumers is wholly or
partially impracticable or money remains after redress is completed the
Commission may apply any remaining money for such other equitable relief
(including consumer information remedies) as it determines to be reasonably
related to Defendants practices alleged in the Complaint Any money not
used for such equitable relief is to be deposited to the US Treasury as
disgorgement Defendant has no right to challenge any actions the
Commission or its representatives may take pursuant to this Subsection
IV CUSTOMER INFORMATION
IT IS FURTHER ORDERED that Defendant Defendants officers
agents employees and attorneys and all other persons in active concert
or participation with any of them who receive actual notice of this Order
Page 16 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 16 of 32
acting directly or indirectly are permanently restrained and
enjoined from failing to provide customer information in its possession
custody or control that is sufficient to enable the Commission to efficiently
administer consumer redress including consumer name phone number
address other contact information account number and account balance or
other reasonably available information that the Commission requests to
effectuate consumer redress If a representative of the Commission requests
in writing any such information in Defendants possession custody or
control related to redress Defendant must provide it in the form prescribed
by the Commission within 14 business days
The Parties anticipate that consumers may make inquiries to
Defendant regarding consumer funds subject to this Order Defendant shall
maintain a record of such contacts including consumer contact information
and shall provide such records to the Commission as required in this Section
IV Following receipt of consumer inquiries that should properly be directed
to the Commission rather than Defendant Defendant shall direct the
consumer to contact the FTC at a number and address specified by the FTC
for this purpose
Page 17 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 17 of 32
ORDER ACKNOWLEDGMENTS
IT IS FURTHER ORDERED that Defendant obtains
acknowledgments of receipt of this Order
A Defendant within 7 days of entry of this Order must submit to
the Commission an acknowledgment of receipt of this Order sworn under
penalty of perjury
B For 5 years after entry of this Order Defendant must deliver
a copy of this Order to (I) all principals officers and directors (2) all
employees agents and representatives with authority to approve
advertising or marketing material on behalf of Defendant for any
Prepaid Product and all employees who supervise the formulation of
advertising and marketing material for any Prepaid Product and (3) any
business entity resulting from any change in structure as set forth in the
Section titled Compliance Reporting Delivery must occur within 7 days
of entry of this Order for current personnel For all others delivery must
occur before they assume their responsibilities
C From each individual or entity to which Defendant delivered
a copy of this Order Defendant must obtain within 30 days a signed
and dated acknowledgment of receipt of this Order (an Order
Acknowledgement) Page 18 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 18 of 32
COMPLIANCE REPORTING
IT IS FURTHER ORDERED that Defendant make timely
submissions to the Commission
A One year after entry of this Order Defendant must submit a
compliance report sworn under penalty of perjury Defendant must
1 identify the primary physical postal and email address
and telephone number as designated points of contact which
representatives of the Commission may use to communicate with Defendant
2 identify all of Defendants businesses by all of their
names telephone numbers and physical postal email and Internet
addresses
3 describe the activities of each business including the
goods and services offered and the means of advertising marketing and
sales
4 describe in detail whether and how Defendant is in
compliance with each Section of this Order and
5 provide a copy of each Order Acknowledgment obtained
pursuant to this Order unless previously submitted to the Commission
B For 20 years after entry of this Order Defendant must submit a
compliance notice sworn under penalty of perjury within 14 days of any
Page 19 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 19 of 32
in the following
1 any designated point of contact or
2 the structure of Defendant or any entity that Defendant
has any ownership interest in or controls directly or indirectly that may
affect compliance obligations arising under this Order including creation
merger sale or dissolution of the entity or any subsidiary parent or
affiliate that engages in any acts or practices subject to this Order
C Defendant must submit to the Commission notice of the filing
of any bankruptcy petition insolvency proceeding or similar proceeding by
or against Defendant within 14 days of its filing
D Any submission to the Commission required by this Order to be
sworn under penalty of perjury must be true and accurate and comply with
28 USC sect 1746 such as by concluding I declare under penalty of perjury
under the laws of the United States of America that the foregoing is true
and correct Executed on [date] and supplying the date signatorys full
name title (if applicable) and signature
E Unless otherwise directed by a Commission representative in
writing all submissions to the Commission pursuant to this Order must be
emailed to DEbriefftcgov or sent by overnight courier (not the US Postal
Service) to Associate Director for Enforcement Bureau of Consumer
Page 20 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 20 of 32
Federal Trade Commission 600 Pennsylvania Avenue NW
Washington DC 20580 The subject line must begin FTC v NetSpend
Corporation Xl 70006
VII RECORDKEEPING
IT IS FURTHER ORDERED that Defendant must create certain
records for 20 years after entry of the Order and retain each such record for
5 years Specifically Defendant must create and retain the following
records in connection with the advertisement marketing promotion
offering for sale sale management or servicing of any Prepaid Product
A accounting records showing the revenues from all such goods
or services sold
B personnel records of Defendant showing for each individual
providing services whether as an employee or otherwise that persons
name addresses telephone numbers job title or position dates of service
and (if applicable) the reason for termination
C records of all consumer complaints whether received directly
or indirectly related to access to funds which shall include but not be
limited to available consumer contact information date of complaint
source of complaint category of complaint and the outcome provided that
this Subparagraph shall apply only to consumer complaints related to
Page 21of26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 21 of 32
to funds received directly or indirectly from a consumer a federal or
state agency the Better Business Bureau State Attorneys General as
well as any consumer lawsuit
D all records necessary to demonstrate full compliance with each
provision of this Order including all submissions to the Commission
E a copy of each unique advertisement or other marketing
material created produced or approved by Defendant and
F records of blocks that restrict consumer access to Prepaid
Products requests by consumers to activate and register Prepaid
Products when submitted directly to Defendant or when records of such
requests are available to Defendant requests by consumers to lift blocks
on Prepaid Products requests by consumers for closure of Prepaid Product
accounts and any subsequent disbursements of funds to consumers
consumer notifications of account errors and disbursements of provisional
credits Provided however that to the extent Defendant does not
maintain records as provided in this Subsection in the ordinary course of
business as of the date of this Order and must implement new record
keeping policies systems or procedures to create them Defendant shall
implement such policies systems or procedures within 90 days after the
date of this Order Provided further that Defendant shall not be required
Page 22 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 22 of 32
create or maintain any record identified in this Subsection if Defendant
demonstrates that it is prohibited by banking law or regulation from
creating or maintaining such record
VIII COMPLIANCE MONITORING
IT IS FURTHER ORDERED that for the purpose of monitoring
Defendants compliance with this Order and any failure to transfer any
assets as required by this Order
A Within 14 days of receipt of a written request from a
representative of the Commission Defendant must submit additional
compliance reports or other requested information which must be sworn
under penalty of perjury and appear for depositions and produce
documents for inspection and copying The Commission is also authorized
to obtain discovery without further leave of court using any of the
procedures prescribed by Federal Rules of Civil Procedure 29 30 (including
telephonic depositions) 31 33 34 36 45 and 69
B For matters concerning this Order the Commission is
authorized to communicate directly with Defendant Defendant must
permit representatives of the Commission to interview any employee or
Page 23 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 23 of 32
person affiliated with Defendant who has agreed to such an
interview The person interviewed may have counsel present
C The Commission may use all other lawful means including
posing through its representatives as consumers suppliers or other
individuals or entities to Defendant or any individual or entity affiliated
with Defendant without the necessity of identification or prior notice
Nothing in this Order limits the Commissions lawful use of compulsory
process pursuant to Sections 9 and 20 of the FTC Act 15 USC sectsect 49
57b-l
IX RETENTION OF JURISDICTION
IT IS FURTHER ORDERED that this Court retains jurisdiction of this
matter for purposes of construction modification and enforcement of this
Order
SO ORDERED this ___ day of ____________ _ 2017
Amy Totenberg UNITED STATES DISTRICT JUDGE
Page 24 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 24 of 32
STIPULATED AND AGREED FOR
PLAINTIFF
FEDERAL TRADE COJM11ISSION
Dated jQH~ S ( 2-6 - - -=--=---------------- ------
7
Mark By fe~~
Glassman Adam M Wesolowski Federal Trade Commission 600 Pennsylvania Avenue NW Mailstop CC-10232 Washington DC 20580 Email mglassmanftcgov awesolowskiftcgov Phone (202) 326-2826 (Glassman) (202) 326-3068 (Wesolowski) Fax (202) 326-3768
By 12rdf-d-cgtltd ~ Robin L Rock (Bar No 629532) Federal Trade Commission 225 Peachtree Street NE Suite 1500 Atlanta GA 30303 Email rrockftcgov Phone (404) 656-1368 Fax (404) 656-1379
Attorneys for Plaintiff FEDERAL TRADE COMMISSION
Page 25 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 25 of 32
DE~gSPEND CORPORATION
Diane By~
McCartnev fv~~
- d Vice President Compliance NETSPEND CORPORATION
MORRISON amp FOERSTER LLP
Steven JVI Kaufmann Natalie Fleming ~olen 2000 Pennsylvania Avenue Vv ashington DC 20006 Telephone (212) 468middot8000 Ekfl 11fm ann~mofocom nilemi]1g_g_ol~n(~mofoco1y~
Sarah N Davis 425 Market Street San Francisco California 94105-2482 Telephone (415) 268-7000 Sarah Do yi s(ahn ofo com
By---~-=-~+----=-1i__~___ Michael B Terry Georgia Bar No 702582 BONDURANl MIXSON amp ELMORE LLP 1201 West Peachtree Street NV Suite 3900 Atlanta GA 30309 Email er1middotvbm elaw99nl (404) 881 middot4100
Attorneys for Defendant NetSpend Corporation
Page 26 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 26 of 32
Case 116-cv-04203-AT Document 41 Filed 033117 Page 27 of 32
Appendix A-1
[ON NETSPEND CORPORATION LETTERHEAD]
IMPORTANT NOTICE TO REMOVE NETSPEND CARD MATERIALS TO COMPLY WITH FEDERAL COURT ORDER
[insert addressee name][insert addressee address]
Dear [Third Party]
In response to a settlement with the Federal Trade Commission NetSpend Corporation (NetSpend) has agreed to a court order prohibiting the use of certain claims in marketing and other materials In accordance with this order NetSpend directs that within sixty (60) days of the date of this letter you stop using any existing NetSpend materials that state that NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval Attached hereto are copies photographs or images of sample materials subject to removal NetSpend willmake revised materials available to you shortly if it has not already provided such materials
Should you have any questions about compliance with this notification please contact [insert NetSpend contact person] Further information about the order can be obtained by visiting wwwftcgov and searching for ldquoNetSpendrdquo
Sincerely
[Name][Title]NetSpend Corporation
Case 116-cv-04203-AT Document 41 Filed 033117 Page 28 of 32
Appendix A-2
[ON NETSPEND CORPORATION LETTERHEAD]
IMPORTANT NOTICE TO UPDATE NETSPEND CARD MATERIALS TO COMPLY WITH FEDERAL COURT ORDER
[insert addressee name][insert addressee address]
Dear [Third Party]
In response to a settlement with the Federal Trade Commission NetSpend Corporation (NetSpend) has agreed to a court order prohibiting the use of certain claims in marketing and other materials In accordance with this order NetSpend [as applicable ndash as successor-in-interest to Skylight Financial Inc] directs that you affix corrective stickers to any existing NetSpend materials that state NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval
Enclosed with this letter are corrective stickers stating ldquoYou must meet identity verification requirements to activate and use the cardrdquo These stickers must be placed on the NetSpend materials in close proximity to such statements that NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval If the foregoingstatements are contained within an envelope or package that is already sealed then the sticker shall be placed in a prominent position on the outside of the envelope or package Attached also are copies photographs or images of sample materials illustrating the required correction
Should you have any questions about compliance with this notification please contact [insert NetSpend contact person] Further information about the order can be obtained by visiting wwwftcgov and searching for ldquoNetSpendrdquo
Sincerely
[Name][Title]NetSpend Corporation
Case 116-cv-04203-AT Document 41 Filed 033117 Page 29 of 32
Appendix B
Subject line of e-mail NetSpend [or such other NetSpend brand eg PayPal] Card Refunds Available
You may be eligible for a refund related to your [Branded Name (as applicable)] prepaid card [managed by NetSpend (as necessary where a branded name is used)] Under a settlement with the Federal Trade Commission NetSpend will refund certain customers
If you wish to receive your money via check complete this personalized request form [REQUEST FORM (Link to Personalized Survey per customer) Samplehttpswwwnetspendcomaccountcs surveymid= 1052492523ampsid=601] by ltDate of End of Redress Periodgt
After ltDate of End of Redress Periodgt you will need to contact both the FTC and NetSpend to receive your funds
NetSpend will mail checks within 30 days of receiving a valid request form
If instead of getting a check by filling out the form linked above you would like us to send your refund to an existing NetSpend card please contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 You may be required to submit identification documents to NetSpend to activate your card and access your money
For more information about the program visit wwwftcgovNetSpend If youhave any problems receiving your funds please let the FTC know by emailing NetSpendftcgov
Online Check Request Form
Under the terms of NetSpendrsquos settlement with the Federal Trade Commission [link to wwwftcgovNetSpend] NetSpend will refund certain customers who loaded money on cards
How you would like to receive your money
Case 116-cv-04203-AT Document 41 Filed 033117 Page 30 of 32
_____ Close my account and mail a check to the address on my account
_____ Close my account and mail a check to another address (please enter your new address below)
_____I would like to contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 to receive my funds via a NetSpend card I understand that with this option I may be required to submit identification documents to NetSpend to activate my card and access my money
New Address Street
City
State
Zip
Phone
Finish
Case 116-cv-04203-AT Document 41 Filed 033117 Page 31 of 32
Subject line of mailed letter NetSpend [or applicable NetSpend brand eg PayPal] Card Refunds Available
You may be eligible for a refund related to your [Brand Name (as applicable)] prepaid card [managed by NetSpend (as necessary where a branded name is used)] Under a settlement with the Federal Trade Commission NetSpend willrefund certain customers
If you wish to receive your money via check complete the personalized formbelow by ltDate of End of Redress Periodgt and return it to NetSpend in the enclosed envelope If you received a refund notice from NetSpend by email you may instead go to the personalized request form linked in the email to request your refund
After ltDate of End of Redress Periodgt you will need to contact both the FTC and NetSpend to receive your funds
NetSpend will mail checks within 30 days of receiving a valid request form
For more information about the program visit wwwftcgovNetSpend If youhave any problems receiving your funds please let the FTC know by emailing NetSpendftcgov
Reference Number _________ Name ltFirst Namegt ltLast Namegt Account Address ltStreetgt ltCitygt ltStategt ltZipgt
Check Request
_____ Close my account and mail a check to the address on my account
_____ Close my account and mail a check to another address (please enter your new address below)
Street
City
Case 116-cv-04203-AT Document 41 Filed 033117 Page 32 of 32
State
Zip
Phone
_____I would like to contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 to receive my funds via a NetSpend card I understand that with this option I may be required to submit identification documents to NetSpend to activate my card and access my money
Enclosure Envelope addressed to NetSpend with postage prepaid
Covered Consumer Account or otherwise made available to the
consumer (iii) returned to the IRS or (iv) charged after funds were made
available by activation of a Covered Consumer Account at the request of the
consumer in which case such fees described in clause (i) - (iv) above shall be
deemed to be funds disposed of for purposes of this Order including
Subsection IIIF and (b) any sums retained by Defendant related to a
Covered Consumer Account after the conclusion of the escheatment period
applicable to the account
2 Provide to counsel for the Commission a sworn written
report that details the disposition by account of (a) all funds paid to the
Commission under Subsection IIIDl and (b) all Covered Consumer
Accounts that were activated or closed between September 1 2016 and the
conclusion of the Consumer Redress Period
E Beginning six months after the conclusion of the Consumer
Redress Period and every six months thereafter (the Six Month
Adjustment Dates) until all funds on deposit in Covered Consumer
Accounts as of the conclusion of the Consumer Redress Period are
distributed pursuant to the following adjustments or reductions (i) funds in
Covered Consumer Accounts are refunded held in activated accounts or
Page 12 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 12 of 32
made available to consumers (ii) funds in Covered Consumer
Accounts are paid to the FTC (iii) funds in Covered Consumer Accounts are
returned to the IRS (iv) funds in Covered Consumer Accounts are paid or
returned to any other party with a bona fide claim to such funds or (v) funds
in Covered Consumer Accounts are subject to initiation of the process of
escheat (the Covered Consumer Account Adjustments) Defendant shall
sixty (60) days after each Six Month Adjustment Date (the Six Month
Payment Date)
1 Pay to the Commission an amount comprised of (a) fees
charged if any including account maintenance fees (also referred to as
account inactivity fees) and monthly or annual plan fees to a Covered
Consumer Account during that six month period that were not (i) refunded
(ii) credited to an activated Covered Consumer Account or otherwise made
available to the consumer (iii) returned to the IRS or (iv) charged after funds
were made available by activation of a Covered Consumer Account at the
request of the consumer in which case such fees described in clauses (i) middot (iv)
above shall be deemed to be funds disposed of for purposes of this Order
including Subsection IIIF and (b) any sums retained by Defendant related to
a Covered Consumer Account after the conclusion of the escheatment period
Page 13 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 13 of 32
to the account The total sum of all of the payments on the Six
Month Payment Dates shall not exceed the amount of funds on deposit in
Covered Consumer Accounts as of the conclusion of the Consumer Redress
Period and each individual payment on a Six Month Payment Date shall not
exceed the amount of funds on deposit in Covered Consumer Accounts as of
the prior Six Month Adjustment Date after applying the Covered Consumer
Account Adjustments
2 Provide to counsel for the Commission a sworn written
report that details the disposition of the following by account (a) all funds
paid to the Commission under Subsection IIIE L (b) all Covered Consumer
Accounts that were activated or closed during that six month period (c) all
Covered Consumer Account Adjustments and (d) all funds that remain on
deposit in Covered Consumer Accounts after application of the Covered
Consumer Adjustments
F To the extent that any funds included in the monetary relief
identified in this Section that totals no less than fifty-three million dollars
($53000000) are not disposed of by operation of Subsections IIIA -IIIE
Defendant shall pay the amount not disposed of by operation of Subsections
IIIA -IIIE to the Commission sixty days after the last Six Month Payment
Page 14 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 14 of 32
G Defendant relinquishes dominion and all legal and equitable
right title and interest in all assets transferred to the FTC the IRS
consumers or any third-party pursuant to this Order and may not seek the
return of any assets
H The facts alleged in the Complaint will be taken as true
without further proof in any subsequent civil litigation by or on behalf of
the Commission to enforce its rights to any payment or monetary judgment
pursuant to this Order such as a claim of nondischargeability in any
bankruptcy case
I The facts alleged in the Complaint establish all elements
necessary to sustain an action by the Commission pursuant to Section
523(a)(2)(A) of the Bankruptcy Code 11 USC sect 523(a)(2)(A) and this
Order will have collateral estoppel effect for such purposes
J Defendants admissions in Subsections IIIHand IIII above are
not intended to be nor shall they be construed as admissions with respect to
any claim by any third party
K Defendant acknowledges that its Taxpayer Identification
Numbers (Social Security Numbers or Employer Identification Numbers)
Page 15 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 15 of 32
Defendant must submit to the Commission may be used for
collecting and reporting on any delinquent amount arising out of this Order
in accordance with 31 USC sect7701
L All money paid to the Commission pursuant to this Order may be
deposited into a fund administered by the Commission or its designee to be
used for equitable relief including consumer redress and any attendant
expenses for the administration of any redress fund If a representative of
the Commission decides that direct redress to consumers is wholly or
partially impracticable or money remains after redress is completed the
Commission may apply any remaining money for such other equitable relief
(including consumer information remedies) as it determines to be reasonably
related to Defendants practices alleged in the Complaint Any money not
used for such equitable relief is to be deposited to the US Treasury as
disgorgement Defendant has no right to challenge any actions the
Commission or its representatives may take pursuant to this Subsection
IV CUSTOMER INFORMATION
IT IS FURTHER ORDERED that Defendant Defendants officers
agents employees and attorneys and all other persons in active concert
or participation with any of them who receive actual notice of this Order
Page 16 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 16 of 32
acting directly or indirectly are permanently restrained and
enjoined from failing to provide customer information in its possession
custody or control that is sufficient to enable the Commission to efficiently
administer consumer redress including consumer name phone number
address other contact information account number and account balance or
other reasonably available information that the Commission requests to
effectuate consumer redress If a representative of the Commission requests
in writing any such information in Defendants possession custody or
control related to redress Defendant must provide it in the form prescribed
by the Commission within 14 business days
The Parties anticipate that consumers may make inquiries to
Defendant regarding consumer funds subject to this Order Defendant shall
maintain a record of such contacts including consumer contact information
and shall provide such records to the Commission as required in this Section
IV Following receipt of consumer inquiries that should properly be directed
to the Commission rather than Defendant Defendant shall direct the
consumer to contact the FTC at a number and address specified by the FTC
for this purpose
Page 17 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 17 of 32
ORDER ACKNOWLEDGMENTS
IT IS FURTHER ORDERED that Defendant obtains
acknowledgments of receipt of this Order
A Defendant within 7 days of entry of this Order must submit to
the Commission an acknowledgment of receipt of this Order sworn under
penalty of perjury
B For 5 years after entry of this Order Defendant must deliver
a copy of this Order to (I) all principals officers and directors (2) all
employees agents and representatives with authority to approve
advertising or marketing material on behalf of Defendant for any
Prepaid Product and all employees who supervise the formulation of
advertising and marketing material for any Prepaid Product and (3) any
business entity resulting from any change in structure as set forth in the
Section titled Compliance Reporting Delivery must occur within 7 days
of entry of this Order for current personnel For all others delivery must
occur before they assume their responsibilities
C From each individual or entity to which Defendant delivered
a copy of this Order Defendant must obtain within 30 days a signed
and dated acknowledgment of receipt of this Order (an Order
Acknowledgement) Page 18 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 18 of 32
COMPLIANCE REPORTING
IT IS FURTHER ORDERED that Defendant make timely
submissions to the Commission
A One year after entry of this Order Defendant must submit a
compliance report sworn under penalty of perjury Defendant must
1 identify the primary physical postal and email address
and telephone number as designated points of contact which
representatives of the Commission may use to communicate with Defendant
2 identify all of Defendants businesses by all of their
names telephone numbers and physical postal email and Internet
addresses
3 describe the activities of each business including the
goods and services offered and the means of advertising marketing and
sales
4 describe in detail whether and how Defendant is in
compliance with each Section of this Order and
5 provide a copy of each Order Acknowledgment obtained
pursuant to this Order unless previously submitted to the Commission
B For 20 years after entry of this Order Defendant must submit a
compliance notice sworn under penalty of perjury within 14 days of any
Page 19 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 19 of 32
in the following
1 any designated point of contact or
2 the structure of Defendant or any entity that Defendant
has any ownership interest in or controls directly or indirectly that may
affect compliance obligations arising under this Order including creation
merger sale or dissolution of the entity or any subsidiary parent or
affiliate that engages in any acts or practices subject to this Order
C Defendant must submit to the Commission notice of the filing
of any bankruptcy petition insolvency proceeding or similar proceeding by
or against Defendant within 14 days of its filing
D Any submission to the Commission required by this Order to be
sworn under penalty of perjury must be true and accurate and comply with
28 USC sect 1746 such as by concluding I declare under penalty of perjury
under the laws of the United States of America that the foregoing is true
and correct Executed on [date] and supplying the date signatorys full
name title (if applicable) and signature
E Unless otherwise directed by a Commission representative in
writing all submissions to the Commission pursuant to this Order must be
emailed to DEbriefftcgov or sent by overnight courier (not the US Postal
Service) to Associate Director for Enforcement Bureau of Consumer
Page 20 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 20 of 32
Federal Trade Commission 600 Pennsylvania Avenue NW
Washington DC 20580 The subject line must begin FTC v NetSpend
Corporation Xl 70006
VII RECORDKEEPING
IT IS FURTHER ORDERED that Defendant must create certain
records for 20 years after entry of the Order and retain each such record for
5 years Specifically Defendant must create and retain the following
records in connection with the advertisement marketing promotion
offering for sale sale management or servicing of any Prepaid Product
A accounting records showing the revenues from all such goods
or services sold
B personnel records of Defendant showing for each individual
providing services whether as an employee or otherwise that persons
name addresses telephone numbers job title or position dates of service
and (if applicable) the reason for termination
C records of all consumer complaints whether received directly
or indirectly related to access to funds which shall include but not be
limited to available consumer contact information date of complaint
source of complaint category of complaint and the outcome provided that
this Subparagraph shall apply only to consumer complaints related to
Page 21of26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 21 of 32
to funds received directly or indirectly from a consumer a federal or
state agency the Better Business Bureau State Attorneys General as
well as any consumer lawsuit
D all records necessary to demonstrate full compliance with each
provision of this Order including all submissions to the Commission
E a copy of each unique advertisement or other marketing
material created produced or approved by Defendant and
F records of blocks that restrict consumer access to Prepaid
Products requests by consumers to activate and register Prepaid
Products when submitted directly to Defendant or when records of such
requests are available to Defendant requests by consumers to lift blocks
on Prepaid Products requests by consumers for closure of Prepaid Product
accounts and any subsequent disbursements of funds to consumers
consumer notifications of account errors and disbursements of provisional
credits Provided however that to the extent Defendant does not
maintain records as provided in this Subsection in the ordinary course of
business as of the date of this Order and must implement new record
keeping policies systems or procedures to create them Defendant shall
implement such policies systems or procedures within 90 days after the
date of this Order Provided further that Defendant shall not be required
Page 22 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 22 of 32
create or maintain any record identified in this Subsection if Defendant
demonstrates that it is prohibited by banking law or regulation from
creating or maintaining such record
VIII COMPLIANCE MONITORING
IT IS FURTHER ORDERED that for the purpose of monitoring
Defendants compliance with this Order and any failure to transfer any
assets as required by this Order
A Within 14 days of receipt of a written request from a
representative of the Commission Defendant must submit additional
compliance reports or other requested information which must be sworn
under penalty of perjury and appear for depositions and produce
documents for inspection and copying The Commission is also authorized
to obtain discovery without further leave of court using any of the
procedures prescribed by Federal Rules of Civil Procedure 29 30 (including
telephonic depositions) 31 33 34 36 45 and 69
B For matters concerning this Order the Commission is
authorized to communicate directly with Defendant Defendant must
permit representatives of the Commission to interview any employee or
Page 23 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 23 of 32
person affiliated with Defendant who has agreed to such an
interview The person interviewed may have counsel present
C The Commission may use all other lawful means including
posing through its representatives as consumers suppliers or other
individuals or entities to Defendant or any individual or entity affiliated
with Defendant without the necessity of identification or prior notice
Nothing in this Order limits the Commissions lawful use of compulsory
process pursuant to Sections 9 and 20 of the FTC Act 15 USC sectsect 49
57b-l
IX RETENTION OF JURISDICTION
IT IS FURTHER ORDERED that this Court retains jurisdiction of this
matter for purposes of construction modification and enforcement of this
Order
SO ORDERED this ___ day of ____________ _ 2017
Amy Totenberg UNITED STATES DISTRICT JUDGE
Page 24 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 24 of 32
STIPULATED AND AGREED FOR
PLAINTIFF
FEDERAL TRADE COJM11ISSION
Dated jQH~ S ( 2-6 - - -=--=---------------- ------
7
Mark By fe~~
Glassman Adam M Wesolowski Federal Trade Commission 600 Pennsylvania Avenue NW Mailstop CC-10232 Washington DC 20580 Email mglassmanftcgov awesolowskiftcgov Phone (202) 326-2826 (Glassman) (202) 326-3068 (Wesolowski) Fax (202) 326-3768
By 12rdf-d-cgtltd ~ Robin L Rock (Bar No 629532) Federal Trade Commission 225 Peachtree Street NE Suite 1500 Atlanta GA 30303 Email rrockftcgov Phone (404) 656-1368 Fax (404) 656-1379
Attorneys for Plaintiff FEDERAL TRADE COMMISSION
Page 25 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 25 of 32
DE~gSPEND CORPORATION
Diane By~
McCartnev fv~~
- d Vice President Compliance NETSPEND CORPORATION
MORRISON amp FOERSTER LLP
Steven JVI Kaufmann Natalie Fleming ~olen 2000 Pennsylvania Avenue Vv ashington DC 20006 Telephone (212) 468middot8000 Ekfl 11fm ann~mofocom nilemi]1g_g_ol~n(~mofoco1y~
Sarah N Davis 425 Market Street San Francisco California 94105-2482 Telephone (415) 268-7000 Sarah Do yi s(ahn ofo com
By---~-=-~+----=-1i__~___ Michael B Terry Georgia Bar No 702582 BONDURANl MIXSON amp ELMORE LLP 1201 West Peachtree Street NV Suite 3900 Atlanta GA 30309 Email er1middotvbm elaw99nl (404) 881 middot4100
Attorneys for Defendant NetSpend Corporation
Page 26 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 26 of 32
Case 116-cv-04203-AT Document 41 Filed 033117 Page 27 of 32
Appendix A-1
[ON NETSPEND CORPORATION LETTERHEAD]
IMPORTANT NOTICE TO REMOVE NETSPEND CARD MATERIALS TO COMPLY WITH FEDERAL COURT ORDER
[insert addressee name][insert addressee address]
Dear [Third Party]
In response to a settlement with the Federal Trade Commission NetSpend Corporation (NetSpend) has agreed to a court order prohibiting the use of certain claims in marketing and other materials In accordance with this order NetSpend directs that within sixty (60) days of the date of this letter you stop using any existing NetSpend materials that state that NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval Attached hereto are copies photographs or images of sample materials subject to removal NetSpend willmake revised materials available to you shortly if it has not already provided such materials
Should you have any questions about compliance with this notification please contact [insert NetSpend contact person] Further information about the order can be obtained by visiting wwwftcgov and searching for ldquoNetSpendrdquo
Sincerely
[Name][Title]NetSpend Corporation
Case 116-cv-04203-AT Document 41 Filed 033117 Page 28 of 32
Appendix A-2
[ON NETSPEND CORPORATION LETTERHEAD]
IMPORTANT NOTICE TO UPDATE NETSPEND CARD MATERIALS TO COMPLY WITH FEDERAL COURT ORDER
[insert addressee name][insert addressee address]
Dear [Third Party]
In response to a settlement with the Federal Trade Commission NetSpend Corporation (NetSpend) has agreed to a court order prohibiting the use of certain claims in marketing and other materials In accordance with this order NetSpend [as applicable ndash as successor-in-interest to Skylight Financial Inc] directs that you affix corrective stickers to any existing NetSpend materials that state NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval
Enclosed with this letter are corrective stickers stating ldquoYou must meet identity verification requirements to activate and use the cardrdquo These stickers must be placed on the NetSpend materials in close proximity to such statements that NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval If the foregoingstatements are contained within an envelope or package that is already sealed then the sticker shall be placed in a prominent position on the outside of the envelope or package Attached also are copies photographs or images of sample materials illustrating the required correction
Should you have any questions about compliance with this notification please contact [insert NetSpend contact person] Further information about the order can be obtained by visiting wwwftcgov and searching for ldquoNetSpendrdquo
Sincerely
[Name][Title]NetSpend Corporation
Case 116-cv-04203-AT Document 41 Filed 033117 Page 29 of 32
Appendix B
Subject line of e-mail NetSpend [or such other NetSpend brand eg PayPal] Card Refunds Available
You may be eligible for a refund related to your [Branded Name (as applicable)] prepaid card [managed by NetSpend (as necessary where a branded name is used)] Under a settlement with the Federal Trade Commission NetSpend will refund certain customers
If you wish to receive your money via check complete this personalized request form [REQUEST FORM (Link to Personalized Survey per customer) Samplehttpswwwnetspendcomaccountcs surveymid= 1052492523ampsid=601] by ltDate of End of Redress Periodgt
After ltDate of End of Redress Periodgt you will need to contact both the FTC and NetSpend to receive your funds
NetSpend will mail checks within 30 days of receiving a valid request form
If instead of getting a check by filling out the form linked above you would like us to send your refund to an existing NetSpend card please contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 You may be required to submit identification documents to NetSpend to activate your card and access your money
For more information about the program visit wwwftcgovNetSpend If youhave any problems receiving your funds please let the FTC know by emailing NetSpendftcgov
Online Check Request Form
Under the terms of NetSpendrsquos settlement with the Federal Trade Commission [link to wwwftcgovNetSpend] NetSpend will refund certain customers who loaded money on cards
How you would like to receive your money
Case 116-cv-04203-AT Document 41 Filed 033117 Page 30 of 32
_____ Close my account and mail a check to the address on my account
_____ Close my account and mail a check to another address (please enter your new address below)
_____I would like to contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 to receive my funds via a NetSpend card I understand that with this option I may be required to submit identification documents to NetSpend to activate my card and access my money
New Address Street
City
State
Zip
Phone
Finish
Case 116-cv-04203-AT Document 41 Filed 033117 Page 31 of 32
Subject line of mailed letter NetSpend [or applicable NetSpend brand eg PayPal] Card Refunds Available
You may be eligible for a refund related to your [Brand Name (as applicable)] prepaid card [managed by NetSpend (as necessary where a branded name is used)] Under a settlement with the Federal Trade Commission NetSpend willrefund certain customers
If you wish to receive your money via check complete the personalized formbelow by ltDate of End of Redress Periodgt and return it to NetSpend in the enclosed envelope If you received a refund notice from NetSpend by email you may instead go to the personalized request form linked in the email to request your refund
After ltDate of End of Redress Periodgt you will need to contact both the FTC and NetSpend to receive your funds
NetSpend will mail checks within 30 days of receiving a valid request form
For more information about the program visit wwwftcgovNetSpend If youhave any problems receiving your funds please let the FTC know by emailing NetSpendftcgov
Reference Number _________ Name ltFirst Namegt ltLast Namegt Account Address ltStreetgt ltCitygt ltStategt ltZipgt
Check Request
_____ Close my account and mail a check to the address on my account
_____ Close my account and mail a check to another address (please enter your new address below)
Street
City
Case 116-cv-04203-AT Document 41 Filed 033117 Page 32 of 32
State
Zip
Phone
_____I would like to contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 to receive my funds via a NetSpend card I understand that with this option I may be required to submit identification documents to NetSpend to activate my card and access my money
Enclosure Envelope addressed to NetSpend with postage prepaid
made available to consumers (ii) funds in Covered Consumer
Accounts are paid to the FTC (iii) funds in Covered Consumer Accounts are
returned to the IRS (iv) funds in Covered Consumer Accounts are paid or
returned to any other party with a bona fide claim to such funds or (v) funds
in Covered Consumer Accounts are subject to initiation of the process of
escheat (the Covered Consumer Account Adjustments) Defendant shall
sixty (60) days after each Six Month Adjustment Date (the Six Month
Payment Date)
1 Pay to the Commission an amount comprised of (a) fees
charged if any including account maintenance fees (also referred to as
account inactivity fees) and monthly or annual plan fees to a Covered
Consumer Account during that six month period that were not (i) refunded
(ii) credited to an activated Covered Consumer Account or otherwise made
available to the consumer (iii) returned to the IRS or (iv) charged after funds
were made available by activation of a Covered Consumer Account at the
request of the consumer in which case such fees described in clauses (i) middot (iv)
above shall be deemed to be funds disposed of for purposes of this Order
including Subsection IIIF and (b) any sums retained by Defendant related to
a Covered Consumer Account after the conclusion of the escheatment period
Page 13 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 13 of 32
to the account The total sum of all of the payments on the Six
Month Payment Dates shall not exceed the amount of funds on deposit in
Covered Consumer Accounts as of the conclusion of the Consumer Redress
Period and each individual payment on a Six Month Payment Date shall not
exceed the amount of funds on deposit in Covered Consumer Accounts as of
the prior Six Month Adjustment Date after applying the Covered Consumer
Account Adjustments
2 Provide to counsel for the Commission a sworn written
report that details the disposition of the following by account (a) all funds
paid to the Commission under Subsection IIIE L (b) all Covered Consumer
Accounts that were activated or closed during that six month period (c) all
Covered Consumer Account Adjustments and (d) all funds that remain on
deposit in Covered Consumer Accounts after application of the Covered
Consumer Adjustments
F To the extent that any funds included in the monetary relief
identified in this Section that totals no less than fifty-three million dollars
($53000000) are not disposed of by operation of Subsections IIIA -IIIE
Defendant shall pay the amount not disposed of by operation of Subsections
IIIA -IIIE to the Commission sixty days after the last Six Month Payment
Page 14 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 14 of 32
G Defendant relinquishes dominion and all legal and equitable
right title and interest in all assets transferred to the FTC the IRS
consumers or any third-party pursuant to this Order and may not seek the
return of any assets
H The facts alleged in the Complaint will be taken as true
without further proof in any subsequent civil litigation by or on behalf of
the Commission to enforce its rights to any payment or monetary judgment
pursuant to this Order such as a claim of nondischargeability in any
bankruptcy case
I The facts alleged in the Complaint establish all elements
necessary to sustain an action by the Commission pursuant to Section
523(a)(2)(A) of the Bankruptcy Code 11 USC sect 523(a)(2)(A) and this
Order will have collateral estoppel effect for such purposes
J Defendants admissions in Subsections IIIHand IIII above are
not intended to be nor shall they be construed as admissions with respect to
any claim by any third party
K Defendant acknowledges that its Taxpayer Identification
Numbers (Social Security Numbers or Employer Identification Numbers)
Page 15 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 15 of 32
Defendant must submit to the Commission may be used for
collecting and reporting on any delinquent amount arising out of this Order
in accordance with 31 USC sect7701
L All money paid to the Commission pursuant to this Order may be
deposited into a fund administered by the Commission or its designee to be
used for equitable relief including consumer redress and any attendant
expenses for the administration of any redress fund If a representative of
the Commission decides that direct redress to consumers is wholly or
partially impracticable or money remains after redress is completed the
Commission may apply any remaining money for such other equitable relief
(including consumer information remedies) as it determines to be reasonably
related to Defendants practices alleged in the Complaint Any money not
used for such equitable relief is to be deposited to the US Treasury as
disgorgement Defendant has no right to challenge any actions the
Commission or its representatives may take pursuant to this Subsection
IV CUSTOMER INFORMATION
IT IS FURTHER ORDERED that Defendant Defendants officers
agents employees and attorneys and all other persons in active concert
or participation with any of them who receive actual notice of this Order
Page 16 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 16 of 32
acting directly or indirectly are permanently restrained and
enjoined from failing to provide customer information in its possession
custody or control that is sufficient to enable the Commission to efficiently
administer consumer redress including consumer name phone number
address other contact information account number and account balance or
other reasonably available information that the Commission requests to
effectuate consumer redress If a representative of the Commission requests
in writing any such information in Defendants possession custody or
control related to redress Defendant must provide it in the form prescribed
by the Commission within 14 business days
The Parties anticipate that consumers may make inquiries to
Defendant regarding consumer funds subject to this Order Defendant shall
maintain a record of such contacts including consumer contact information
and shall provide such records to the Commission as required in this Section
IV Following receipt of consumer inquiries that should properly be directed
to the Commission rather than Defendant Defendant shall direct the
consumer to contact the FTC at a number and address specified by the FTC
for this purpose
Page 17 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 17 of 32
ORDER ACKNOWLEDGMENTS
IT IS FURTHER ORDERED that Defendant obtains
acknowledgments of receipt of this Order
A Defendant within 7 days of entry of this Order must submit to
the Commission an acknowledgment of receipt of this Order sworn under
penalty of perjury
B For 5 years after entry of this Order Defendant must deliver
a copy of this Order to (I) all principals officers and directors (2) all
employees agents and representatives with authority to approve
advertising or marketing material on behalf of Defendant for any
Prepaid Product and all employees who supervise the formulation of
advertising and marketing material for any Prepaid Product and (3) any
business entity resulting from any change in structure as set forth in the
Section titled Compliance Reporting Delivery must occur within 7 days
of entry of this Order for current personnel For all others delivery must
occur before they assume their responsibilities
C From each individual or entity to which Defendant delivered
a copy of this Order Defendant must obtain within 30 days a signed
and dated acknowledgment of receipt of this Order (an Order
Acknowledgement) Page 18 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 18 of 32
COMPLIANCE REPORTING
IT IS FURTHER ORDERED that Defendant make timely
submissions to the Commission
A One year after entry of this Order Defendant must submit a
compliance report sworn under penalty of perjury Defendant must
1 identify the primary physical postal and email address
and telephone number as designated points of contact which
representatives of the Commission may use to communicate with Defendant
2 identify all of Defendants businesses by all of their
names telephone numbers and physical postal email and Internet
addresses
3 describe the activities of each business including the
goods and services offered and the means of advertising marketing and
sales
4 describe in detail whether and how Defendant is in
compliance with each Section of this Order and
5 provide a copy of each Order Acknowledgment obtained
pursuant to this Order unless previously submitted to the Commission
B For 20 years after entry of this Order Defendant must submit a
compliance notice sworn under penalty of perjury within 14 days of any
Page 19 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 19 of 32
in the following
1 any designated point of contact or
2 the structure of Defendant or any entity that Defendant
has any ownership interest in or controls directly or indirectly that may
affect compliance obligations arising under this Order including creation
merger sale or dissolution of the entity or any subsidiary parent or
affiliate that engages in any acts or practices subject to this Order
C Defendant must submit to the Commission notice of the filing
of any bankruptcy petition insolvency proceeding or similar proceeding by
or against Defendant within 14 days of its filing
D Any submission to the Commission required by this Order to be
sworn under penalty of perjury must be true and accurate and comply with
28 USC sect 1746 such as by concluding I declare under penalty of perjury
under the laws of the United States of America that the foregoing is true
and correct Executed on [date] and supplying the date signatorys full
name title (if applicable) and signature
E Unless otherwise directed by a Commission representative in
writing all submissions to the Commission pursuant to this Order must be
emailed to DEbriefftcgov or sent by overnight courier (not the US Postal
Service) to Associate Director for Enforcement Bureau of Consumer
Page 20 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 20 of 32
Federal Trade Commission 600 Pennsylvania Avenue NW
Washington DC 20580 The subject line must begin FTC v NetSpend
Corporation Xl 70006
VII RECORDKEEPING
IT IS FURTHER ORDERED that Defendant must create certain
records for 20 years after entry of the Order and retain each such record for
5 years Specifically Defendant must create and retain the following
records in connection with the advertisement marketing promotion
offering for sale sale management or servicing of any Prepaid Product
A accounting records showing the revenues from all such goods
or services sold
B personnel records of Defendant showing for each individual
providing services whether as an employee or otherwise that persons
name addresses telephone numbers job title or position dates of service
and (if applicable) the reason for termination
C records of all consumer complaints whether received directly
or indirectly related to access to funds which shall include but not be
limited to available consumer contact information date of complaint
source of complaint category of complaint and the outcome provided that
this Subparagraph shall apply only to consumer complaints related to
Page 21of26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 21 of 32
to funds received directly or indirectly from a consumer a federal or
state agency the Better Business Bureau State Attorneys General as
well as any consumer lawsuit
D all records necessary to demonstrate full compliance with each
provision of this Order including all submissions to the Commission
E a copy of each unique advertisement or other marketing
material created produced or approved by Defendant and
F records of blocks that restrict consumer access to Prepaid
Products requests by consumers to activate and register Prepaid
Products when submitted directly to Defendant or when records of such
requests are available to Defendant requests by consumers to lift blocks
on Prepaid Products requests by consumers for closure of Prepaid Product
accounts and any subsequent disbursements of funds to consumers
consumer notifications of account errors and disbursements of provisional
credits Provided however that to the extent Defendant does not
maintain records as provided in this Subsection in the ordinary course of
business as of the date of this Order and must implement new record
keeping policies systems or procedures to create them Defendant shall
implement such policies systems or procedures within 90 days after the
date of this Order Provided further that Defendant shall not be required
Page 22 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 22 of 32
create or maintain any record identified in this Subsection if Defendant
demonstrates that it is prohibited by banking law or regulation from
creating or maintaining such record
VIII COMPLIANCE MONITORING
IT IS FURTHER ORDERED that for the purpose of monitoring
Defendants compliance with this Order and any failure to transfer any
assets as required by this Order
A Within 14 days of receipt of a written request from a
representative of the Commission Defendant must submit additional
compliance reports or other requested information which must be sworn
under penalty of perjury and appear for depositions and produce
documents for inspection and copying The Commission is also authorized
to obtain discovery without further leave of court using any of the
procedures prescribed by Federal Rules of Civil Procedure 29 30 (including
telephonic depositions) 31 33 34 36 45 and 69
B For matters concerning this Order the Commission is
authorized to communicate directly with Defendant Defendant must
permit representatives of the Commission to interview any employee or
Page 23 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 23 of 32
person affiliated with Defendant who has agreed to such an
interview The person interviewed may have counsel present
C The Commission may use all other lawful means including
posing through its representatives as consumers suppliers or other
individuals or entities to Defendant or any individual or entity affiliated
with Defendant without the necessity of identification or prior notice
Nothing in this Order limits the Commissions lawful use of compulsory
process pursuant to Sections 9 and 20 of the FTC Act 15 USC sectsect 49
57b-l
IX RETENTION OF JURISDICTION
IT IS FURTHER ORDERED that this Court retains jurisdiction of this
matter for purposes of construction modification and enforcement of this
Order
SO ORDERED this ___ day of ____________ _ 2017
Amy Totenberg UNITED STATES DISTRICT JUDGE
Page 24 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 24 of 32
STIPULATED AND AGREED FOR
PLAINTIFF
FEDERAL TRADE COJM11ISSION
Dated jQH~ S ( 2-6 - - -=--=---------------- ------
7
Mark By fe~~
Glassman Adam M Wesolowski Federal Trade Commission 600 Pennsylvania Avenue NW Mailstop CC-10232 Washington DC 20580 Email mglassmanftcgov awesolowskiftcgov Phone (202) 326-2826 (Glassman) (202) 326-3068 (Wesolowski) Fax (202) 326-3768
By 12rdf-d-cgtltd ~ Robin L Rock (Bar No 629532) Federal Trade Commission 225 Peachtree Street NE Suite 1500 Atlanta GA 30303 Email rrockftcgov Phone (404) 656-1368 Fax (404) 656-1379
Attorneys for Plaintiff FEDERAL TRADE COMMISSION
Page 25 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 25 of 32
DE~gSPEND CORPORATION
Diane By~
McCartnev fv~~
- d Vice President Compliance NETSPEND CORPORATION
MORRISON amp FOERSTER LLP
Steven JVI Kaufmann Natalie Fleming ~olen 2000 Pennsylvania Avenue Vv ashington DC 20006 Telephone (212) 468middot8000 Ekfl 11fm ann~mofocom nilemi]1g_g_ol~n(~mofoco1y~
Sarah N Davis 425 Market Street San Francisco California 94105-2482 Telephone (415) 268-7000 Sarah Do yi s(ahn ofo com
By---~-=-~+----=-1i__~___ Michael B Terry Georgia Bar No 702582 BONDURANl MIXSON amp ELMORE LLP 1201 West Peachtree Street NV Suite 3900 Atlanta GA 30309 Email er1middotvbm elaw99nl (404) 881 middot4100
Attorneys for Defendant NetSpend Corporation
Page 26 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 26 of 32
Case 116-cv-04203-AT Document 41 Filed 033117 Page 27 of 32
Appendix A-1
[ON NETSPEND CORPORATION LETTERHEAD]
IMPORTANT NOTICE TO REMOVE NETSPEND CARD MATERIALS TO COMPLY WITH FEDERAL COURT ORDER
[insert addressee name][insert addressee address]
Dear [Third Party]
In response to a settlement with the Federal Trade Commission NetSpend Corporation (NetSpend) has agreed to a court order prohibiting the use of certain claims in marketing and other materials In accordance with this order NetSpend directs that within sixty (60) days of the date of this letter you stop using any existing NetSpend materials that state that NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval Attached hereto are copies photographs or images of sample materials subject to removal NetSpend willmake revised materials available to you shortly if it has not already provided such materials
Should you have any questions about compliance with this notification please contact [insert NetSpend contact person] Further information about the order can be obtained by visiting wwwftcgov and searching for ldquoNetSpendrdquo
Sincerely
[Name][Title]NetSpend Corporation
Case 116-cv-04203-AT Document 41 Filed 033117 Page 28 of 32
Appendix A-2
[ON NETSPEND CORPORATION LETTERHEAD]
IMPORTANT NOTICE TO UPDATE NETSPEND CARD MATERIALS TO COMPLY WITH FEDERAL COURT ORDER
[insert addressee name][insert addressee address]
Dear [Third Party]
In response to a settlement with the Federal Trade Commission NetSpend Corporation (NetSpend) has agreed to a court order prohibiting the use of certain claims in marketing and other materials In accordance with this order NetSpend [as applicable ndash as successor-in-interest to Skylight Financial Inc] directs that you affix corrective stickers to any existing NetSpend materials that state NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval
Enclosed with this letter are corrective stickers stating ldquoYou must meet identity verification requirements to activate and use the cardrdquo These stickers must be placed on the NetSpend materials in close proximity to such statements that NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval If the foregoingstatements are contained within an envelope or package that is already sealed then the sticker shall be placed in a prominent position on the outside of the envelope or package Attached also are copies photographs or images of sample materials illustrating the required correction
Should you have any questions about compliance with this notification please contact [insert NetSpend contact person] Further information about the order can be obtained by visiting wwwftcgov and searching for ldquoNetSpendrdquo
Sincerely
[Name][Title]NetSpend Corporation
Case 116-cv-04203-AT Document 41 Filed 033117 Page 29 of 32
Appendix B
Subject line of e-mail NetSpend [or such other NetSpend brand eg PayPal] Card Refunds Available
You may be eligible for a refund related to your [Branded Name (as applicable)] prepaid card [managed by NetSpend (as necessary where a branded name is used)] Under a settlement with the Federal Trade Commission NetSpend will refund certain customers
If you wish to receive your money via check complete this personalized request form [REQUEST FORM (Link to Personalized Survey per customer) Samplehttpswwwnetspendcomaccountcs surveymid= 1052492523ampsid=601] by ltDate of End of Redress Periodgt
After ltDate of End of Redress Periodgt you will need to contact both the FTC and NetSpend to receive your funds
NetSpend will mail checks within 30 days of receiving a valid request form
If instead of getting a check by filling out the form linked above you would like us to send your refund to an existing NetSpend card please contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 You may be required to submit identification documents to NetSpend to activate your card and access your money
For more information about the program visit wwwftcgovNetSpend If youhave any problems receiving your funds please let the FTC know by emailing NetSpendftcgov
Online Check Request Form
Under the terms of NetSpendrsquos settlement with the Federal Trade Commission [link to wwwftcgovNetSpend] NetSpend will refund certain customers who loaded money on cards
How you would like to receive your money
Case 116-cv-04203-AT Document 41 Filed 033117 Page 30 of 32
_____ Close my account and mail a check to the address on my account
_____ Close my account and mail a check to another address (please enter your new address below)
_____I would like to contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 to receive my funds via a NetSpend card I understand that with this option I may be required to submit identification documents to NetSpend to activate my card and access my money
New Address Street
City
State
Zip
Phone
Finish
Case 116-cv-04203-AT Document 41 Filed 033117 Page 31 of 32
Subject line of mailed letter NetSpend [or applicable NetSpend brand eg PayPal] Card Refunds Available
You may be eligible for a refund related to your [Brand Name (as applicable)] prepaid card [managed by NetSpend (as necessary where a branded name is used)] Under a settlement with the Federal Trade Commission NetSpend willrefund certain customers
If you wish to receive your money via check complete the personalized formbelow by ltDate of End of Redress Periodgt and return it to NetSpend in the enclosed envelope If you received a refund notice from NetSpend by email you may instead go to the personalized request form linked in the email to request your refund
After ltDate of End of Redress Periodgt you will need to contact both the FTC and NetSpend to receive your funds
NetSpend will mail checks within 30 days of receiving a valid request form
For more information about the program visit wwwftcgovNetSpend If youhave any problems receiving your funds please let the FTC know by emailing NetSpendftcgov
Reference Number _________ Name ltFirst Namegt ltLast Namegt Account Address ltStreetgt ltCitygt ltStategt ltZipgt
Check Request
_____ Close my account and mail a check to the address on my account
_____ Close my account and mail a check to another address (please enter your new address below)
Street
City
Case 116-cv-04203-AT Document 41 Filed 033117 Page 32 of 32
State
Zip
Phone
_____I would like to contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 to receive my funds via a NetSpend card I understand that with this option I may be required to submit identification documents to NetSpend to activate my card and access my money
Enclosure Envelope addressed to NetSpend with postage prepaid
to the account The total sum of all of the payments on the Six
Month Payment Dates shall not exceed the amount of funds on deposit in
Covered Consumer Accounts as of the conclusion of the Consumer Redress
Period and each individual payment on a Six Month Payment Date shall not
exceed the amount of funds on deposit in Covered Consumer Accounts as of
the prior Six Month Adjustment Date after applying the Covered Consumer
Account Adjustments
2 Provide to counsel for the Commission a sworn written
report that details the disposition of the following by account (a) all funds
paid to the Commission under Subsection IIIE L (b) all Covered Consumer
Accounts that were activated or closed during that six month period (c) all
Covered Consumer Account Adjustments and (d) all funds that remain on
deposit in Covered Consumer Accounts after application of the Covered
Consumer Adjustments
F To the extent that any funds included in the monetary relief
identified in this Section that totals no less than fifty-three million dollars
($53000000) are not disposed of by operation of Subsections IIIA -IIIE
Defendant shall pay the amount not disposed of by operation of Subsections
IIIA -IIIE to the Commission sixty days after the last Six Month Payment
Page 14 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 14 of 32
G Defendant relinquishes dominion and all legal and equitable
right title and interest in all assets transferred to the FTC the IRS
consumers or any third-party pursuant to this Order and may not seek the
return of any assets
H The facts alleged in the Complaint will be taken as true
without further proof in any subsequent civil litigation by or on behalf of
the Commission to enforce its rights to any payment or monetary judgment
pursuant to this Order such as a claim of nondischargeability in any
bankruptcy case
I The facts alleged in the Complaint establish all elements
necessary to sustain an action by the Commission pursuant to Section
523(a)(2)(A) of the Bankruptcy Code 11 USC sect 523(a)(2)(A) and this
Order will have collateral estoppel effect for such purposes
J Defendants admissions in Subsections IIIHand IIII above are
not intended to be nor shall they be construed as admissions with respect to
any claim by any third party
K Defendant acknowledges that its Taxpayer Identification
Numbers (Social Security Numbers or Employer Identification Numbers)
Page 15 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 15 of 32
Defendant must submit to the Commission may be used for
collecting and reporting on any delinquent amount arising out of this Order
in accordance with 31 USC sect7701
L All money paid to the Commission pursuant to this Order may be
deposited into a fund administered by the Commission or its designee to be
used for equitable relief including consumer redress and any attendant
expenses for the administration of any redress fund If a representative of
the Commission decides that direct redress to consumers is wholly or
partially impracticable or money remains after redress is completed the
Commission may apply any remaining money for such other equitable relief
(including consumer information remedies) as it determines to be reasonably
related to Defendants practices alleged in the Complaint Any money not
used for such equitable relief is to be deposited to the US Treasury as
disgorgement Defendant has no right to challenge any actions the
Commission or its representatives may take pursuant to this Subsection
IV CUSTOMER INFORMATION
IT IS FURTHER ORDERED that Defendant Defendants officers
agents employees and attorneys and all other persons in active concert
or participation with any of them who receive actual notice of this Order
Page 16 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 16 of 32
acting directly or indirectly are permanently restrained and
enjoined from failing to provide customer information in its possession
custody or control that is sufficient to enable the Commission to efficiently
administer consumer redress including consumer name phone number
address other contact information account number and account balance or
other reasonably available information that the Commission requests to
effectuate consumer redress If a representative of the Commission requests
in writing any such information in Defendants possession custody or
control related to redress Defendant must provide it in the form prescribed
by the Commission within 14 business days
The Parties anticipate that consumers may make inquiries to
Defendant regarding consumer funds subject to this Order Defendant shall
maintain a record of such contacts including consumer contact information
and shall provide such records to the Commission as required in this Section
IV Following receipt of consumer inquiries that should properly be directed
to the Commission rather than Defendant Defendant shall direct the
consumer to contact the FTC at a number and address specified by the FTC
for this purpose
Page 17 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 17 of 32
ORDER ACKNOWLEDGMENTS
IT IS FURTHER ORDERED that Defendant obtains
acknowledgments of receipt of this Order
A Defendant within 7 days of entry of this Order must submit to
the Commission an acknowledgment of receipt of this Order sworn under
penalty of perjury
B For 5 years after entry of this Order Defendant must deliver
a copy of this Order to (I) all principals officers and directors (2) all
employees agents and representatives with authority to approve
advertising or marketing material on behalf of Defendant for any
Prepaid Product and all employees who supervise the formulation of
advertising and marketing material for any Prepaid Product and (3) any
business entity resulting from any change in structure as set forth in the
Section titled Compliance Reporting Delivery must occur within 7 days
of entry of this Order for current personnel For all others delivery must
occur before they assume their responsibilities
C From each individual or entity to which Defendant delivered
a copy of this Order Defendant must obtain within 30 days a signed
and dated acknowledgment of receipt of this Order (an Order
Acknowledgement) Page 18 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 18 of 32
COMPLIANCE REPORTING
IT IS FURTHER ORDERED that Defendant make timely
submissions to the Commission
A One year after entry of this Order Defendant must submit a
compliance report sworn under penalty of perjury Defendant must
1 identify the primary physical postal and email address
and telephone number as designated points of contact which
representatives of the Commission may use to communicate with Defendant
2 identify all of Defendants businesses by all of their
names telephone numbers and physical postal email and Internet
addresses
3 describe the activities of each business including the
goods and services offered and the means of advertising marketing and
sales
4 describe in detail whether and how Defendant is in
compliance with each Section of this Order and
5 provide a copy of each Order Acknowledgment obtained
pursuant to this Order unless previously submitted to the Commission
B For 20 years after entry of this Order Defendant must submit a
compliance notice sworn under penalty of perjury within 14 days of any
Page 19 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 19 of 32
in the following
1 any designated point of contact or
2 the structure of Defendant or any entity that Defendant
has any ownership interest in or controls directly or indirectly that may
affect compliance obligations arising under this Order including creation
merger sale or dissolution of the entity or any subsidiary parent or
affiliate that engages in any acts or practices subject to this Order
C Defendant must submit to the Commission notice of the filing
of any bankruptcy petition insolvency proceeding or similar proceeding by
or against Defendant within 14 days of its filing
D Any submission to the Commission required by this Order to be
sworn under penalty of perjury must be true and accurate and comply with
28 USC sect 1746 such as by concluding I declare under penalty of perjury
under the laws of the United States of America that the foregoing is true
and correct Executed on [date] and supplying the date signatorys full
name title (if applicable) and signature
E Unless otherwise directed by a Commission representative in
writing all submissions to the Commission pursuant to this Order must be
emailed to DEbriefftcgov or sent by overnight courier (not the US Postal
Service) to Associate Director for Enforcement Bureau of Consumer
Page 20 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 20 of 32
Federal Trade Commission 600 Pennsylvania Avenue NW
Washington DC 20580 The subject line must begin FTC v NetSpend
Corporation Xl 70006
VII RECORDKEEPING
IT IS FURTHER ORDERED that Defendant must create certain
records for 20 years after entry of the Order and retain each such record for
5 years Specifically Defendant must create and retain the following
records in connection with the advertisement marketing promotion
offering for sale sale management or servicing of any Prepaid Product
A accounting records showing the revenues from all such goods
or services sold
B personnel records of Defendant showing for each individual
providing services whether as an employee or otherwise that persons
name addresses telephone numbers job title or position dates of service
and (if applicable) the reason for termination
C records of all consumer complaints whether received directly
or indirectly related to access to funds which shall include but not be
limited to available consumer contact information date of complaint
source of complaint category of complaint and the outcome provided that
this Subparagraph shall apply only to consumer complaints related to
Page 21of26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 21 of 32
to funds received directly or indirectly from a consumer a federal or
state agency the Better Business Bureau State Attorneys General as
well as any consumer lawsuit
D all records necessary to demonstrate full compliance with each
provision of this Order including all submissions to the Commission
E a copy of each unique advertisement or other marketing
material created produced or approved by Defendant and
F records of blocks that restrict consumer access to Prepaid
Products requests by consumers to activate and register Prepaid
Products when submitted directly to Defendant or when records of such
requests are available to Defendant requests by consumers to lift blocks
on Prepaid Products requests by consumers for closure of Prepaid Product
accounts and any subsequent disbursements of funds to consumers
consumer notifications of account errors and disbursements of provisional
credits Provided however that to the extent Defendant does not
maintain records as provided in this Subsection in the ordinary course of
business as of the date of this Order and must implement new record
keeping policies systems or procedures to create them Defendant shall
implement such policies systems or procedures within 90 days after the
date of this Order Provided further that Defendant shall not be required
Page 22 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 22 of 32
create or maintain any record identified in this Subsection if Defendant
demonstrates that it is prohibited by banking law or regulation from
creating or maintaining such record
VIII COMPLIANCE MONITORING
IT IS FURTHER ORDERED that for the purpose of monitoring
Defendants compliance with this Order and any failure to transfer any
assets as required by this Order
A Within 14 days of receipt of a written request from a
representative of the Commission Defendant must submit additional
compliance reports or other requested information which must be sworn
under penalty of perjury and appear for depositions and produce
documents for inspection and copying The Commission is also authorized
to obtain discovery without further leave of court using any of the
procedures prescribed by Federal Rules of Civil Procedure 29 30 (including
telephonic depositions) 31 33 34 36 45 and 69
B For matters concerning this Order the Commission is
authorized to communicate directly with Defendant Defendant must
permit representatives of the Commission to interview any employee or
Page 23 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 23 of 32
person affiliated with Defendant who has agreed to such an
interview The person interviewed may have counsel present
C The Commission may use all other lawful means including
posing through its representatives as consumers suppliers or other
individuals or entities to Defendant or any individual or entity affiliated
with Defendant without the necessity of identification or prior notice
Nothing in this Order limits the Commissions lawful use of compulsory
process pursuant to Sections 9 and 20 of the FTC Act 15 USC sectsect 49
57b-l
IX RETENTION OF JURISDICTION
IT IS FURTHER ORDERED that this Court retains jurisdiction of this
matter for purposes of construction modification and enforcement of this
Order
SO ORDERED this ___ day of ____________ _ 2017
Amy Totenberg UNITED STATES DISTRICT JUDGE
Page 24 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 24 of 32
STIPULATED AND AGREED FOR
PLAINTIFF
FEDERAL TRADE COJM11ISSION
Dated jQH~ S ( 2-6 - - -=--=---------------- ------
7
Mark By fe~~
Glassman Adam M Wesolowski Federal Trade Commission 600 Pennsylvania Avenue NW Mailstop CC-10232 Washington DC 20580 Email mglassmanftcgov awesolowskiftcgov Phone (202) 326-2826 (Glassman) (202) 326-3068 (Wesolowski) Fax (202) 326-3768
By 12rdf-d-cgtltd ~ Robin L Rock (Bar No 629532) Federal Trade Commission 225 Peachtree Street NE Suite 1500 Atlanta GA 30303 Email rrockftcgov Phone (404) 656-1368 Fax (404) 656-1379
Attorneys for Plaintiff FEDERAL TRADE COMMISSION
Page 25 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 25 of 32
DE~gSPEND CORPORATION
Diane By~
McCartnev fv~~
- d Vice President Compliance NETSPEND CORPORATION
MORRISON amp FOERSTER LLP
Steven JVI Kaufmann Natalie Fleming ~olen 2000 Pennsylvania Avenue Vv ashington DC 20006 Telephone (212) 468middot8000 Ekfl 11fm ann~mofocom nilemi]1g_g_ol~n(~mofoco1y~
Sarah N Davis 425 Market Street San Francisco California 94105-2482 Telephone (415) 268-7000 Sarah Do yi s(ahn ofo com
By---~-=-~+----=-1i__~___ Michael B Terry Georgia Bar No 702582 BONDURANl MIXSON amp ELMORE LLP 1201 West Peachtree Street NV Suite 3900 Atlanta GA 30309 Email er1middotvbm elaw99nl (404) 881 middot4100
Attorneys for Defendant NetSpend Corporation
Page 26 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 26 of 32
Case 116-cv-04203-AT Document 41 Filed 033117 Page 27 of 32
Appendix A-1
[ON NETSPEND CORPORATION LETTERHEAD]
IMPORTANT NOTICE TO REMOVE NETSPEND CARD MATERIALS TO COMPLY WITH FEDERAL COURT ORDER
[insert addressee name][insert addressee address]
Dear [Third Party]
In response to a settlement with the Federal Trade Commission NetSpend Corporation (NetSpend) has agreed to a court order prohibiting the use of certain claims in marketing and other materials In accordance with this order NetSpend directs that within sixty (60) days of the date of this letter you stop using any existing NetSpend materials that state that NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval Attached hereto are copies photographs or images of sample materials subject to removal NetSpend willmake revised materials available to you shortly if it has not already provided such materials
Should you have any questions about compliance with this notification please contact [insert NetSpend contact person] Further information about the order can be obtained by visiting wwwftcgov and searching for ldquoNetSpendrdquo
Sincerely
[Name][Title]NetSpend Corporation
Case 116-cv-04203-AT Document 41 Filed 033117 Page 28 of 32
Appendix A-2
[ON NETSPEND CORPORATION LETTERHEAD]
IMPORTANT NOTICE TO UPDATE NETSPEND CARD MATERIALS TO COMPLY WITH FEDERAL COURT ORDER
[insert addressee name][insert addressee address]
Dear [Third Party]
In response to a settlement with the Federal Trade Commission NetSpend Corporation (NetSpend) has agreed to a court order prohibiting the use of certain claims in marketing and other materials In accordance with this order NetSpend [as applicable ndash as successor-in-interest to Skylight Financial Inc] directs that you affix corrective stickers to any existing NetSpend materials that state NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval
Enclosed with this letter are corrective stickers stating ldquoYou must meet identity verification requirements to activate and use the cardrdquo These stickers must be placed on the NetSpend materials in close proximity to such statements that NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval If the foregoingstatements are contained within an envelope or package that is already sealed then the sticker shall be placed in a prominent position on the outside of the envelope or package Attached also are copies photographs or images of sample materials illustrating the required correction
Should you have any questions about compliance with this notification please contact [insert NetSpend contact person] Further information about the order can be obtained by visiting wwwftcgov and searching for ldquoNetSpendrdquo
Sincerely
[Name][Title]NetSpend Corporation
Case 116-cv-04203-AT Document 41 Filed 033117 Page 29 of 32
Appendix B
Subject line of e-mail NetSpend [or such other NetSpend brand eg PayPal] Card Refunds Available
You may be eligible for a refund related to your [Branded Name (as applicable)] prepaid card [managed by NetSpend (as necessary where a branded name is used)] Under a settlement with the Federal Trade Commission NetSpend will refund certain customers
If you wish to receive your money via check complete this personalized request form [REQUEST FORM (Link to Personalized Survey per customer) Samplehttpswwwnetspendcomaccountcs surveymid= 1052492523ampsid=601] by ltDate of End of Redress Periodgt
After ltDate of End of Redress Periodgt you will need to contact both the FTC and NetSpend to receive your funds
NetSpend will mail checks within 30 days of receiving a valid request form
If instead of getting a check by filling out the form linked above you would like us to send your refund to an existing NetSpend card please contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 You may be required to submit identification documents to NetSpend to activate your card and access your money
For more information about the program visit wwwftcgovNetSpend If youhave any problems receiving your funds please let the FTC know by emailing NetSpendftcgov
Online Check Request Form
Under the terms of NetSpendrsquos settlement with the Federal Trade Commission [link to wwwftcgovNetSpend] NetSpend will refund certain customers who loaded money on cards
How you would like to receive your money
Case 116-cv-04203-AT Document 41 Filed 033117 Page 30 of 32
_____ Close my account and mail a check to the address on my account
_____ Close my account and mail a check to another address (please enter your new address below)
_____I would like to contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 to receive my funds via a NetSpend card I understand that with this option I may be required to submit identification documents to NetSpend to activate my card and access my money
New Address Street
City
State
Zip
Phone
Finish
Case 116-cv-04203-AT Document 41 Filed 033117 Page 31 of 32
Subject line of mailed letter NetSpend [or applicable NetSpend brand eg PayPal] Card Refunds Available
You may be eligible for a refund related to your [Brand Name (as applicable)] prepaid card [managed by NetSpend (as necessary where a branded name is used)] Under a settlement with the Federal Trade Commission NetSpend willrefund certain customers
If you wish to receive your money via check complete the personalized formbelow by ltDate of End of Redress Periodgt and return it to NetSpend in the enclosed envelope If you received a refund notice from NetSpend by email you may instead go to the personalized request form linked in the email to request your refund
After ltDate of End of Redress Periodgt you will need to contact both the FTC and NetSpend to receive your funds
NetSpend will mail checks within 30 days of receiving a valid request form
For more information about the program visit wwwftcgovNetSpend If youhave any problems receiving your funds please let the FTC know by emailing NetSpendftcgov
Reference Number _________ Name ltFirst Namegt ltLast Namegt Account Address ltStreetgt ltCitygt ltStategt ltZipgt
Check Request
_____ Close my account and mail a check to the address on my account
_____ Close my account and mail a check to another address (please enter your new address below)
Street
City
Case 116-cv-04203-AT Document 41 Filed 033117 Page 32 of 32
State
Zip
Phone
_____I would like to contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 to receive my funds via a NetSpend card I understand that with this option I may be required to submit identification documents to NetSpend to activate my card and access my money
Enclosure Envelope addressed to NetSpend with postage prepaid
G Defendant relinquishes dominion and all legal and equitable
right title and interest in all assets transferred to the FTC the IRS
consumers or any third-party pursuant to this Order and may not seek the
return of any assets
H The facts alleged in the Complaint will be taken as true
without further proof in any subsequent civil litigation by or on behalf of
the Commission to enforce its rights to any payment or monetary judgment
pursuant to this Order such as a claim of nondischargeability in any
bankruptcy case
I The facts alleged in the Complaint establish all elements
necessary to sustain an action by the Commission pursuant to Section
523(a)(2)(A) of the Bankruptcy Code 11 USC sect 523(a)(2)(A) and this
Order will have collateral estoppel effect for such purposes
J Defendants admissions in Subsections IIIHand IIII above are
not intended to be nor shall they be construed as admissions with respect to
any claim by any third party
K Defendant acknowledges that its Taxpayer Identification
Numbers (Social Security Numbers or Employer Identification Numbers)
Page 15 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 15 of 32
Defendant must submit to the Commission may be used for
collecting and reporting on any delinquent amount arising out of this Order
in accordance with 31 USC sect7701
L All money paid to the Commission pursuant to this Order may be
deposited into a fund administered by the Commission or its designee to be
used for equitable relief including consumer redress and any attendant
expenses for the administration of any redress fund If a representative of
the Commission decides that direct redress to consumers is wholly or
partially impracticable or money remains after redress is completed the
Commission may apply any remaining money for such other equitable relief
(including consumer information remedies) as it determines to be reasonably
related to Defendants practices alleged in the Complaint Any money not
used for such equitable relief is to be deposited to the US Treasury as
disgorgement Defendant has no right to challenge any actions the
Commission or its representatives may take pursuant to this Subsection
IV CUSTOMER INFORMATION
IT IS FURTHER ORDERED that Defendant Defendants officers
agents employees and attorneys and all other persons in active concert
or participation with any of them who receive actual notice of this Order
Page 16 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 16 of 32
acting directly or indirectly are permanently restrained and
enjoined from failing to provide customer information in its possession
custody or control that is sufficient to enable the Commission to efficiently
administer consumer redress including consumer name phone number
address other contact information account number and account balance or
other reasonably available information that the Commission requests to
effectuate consumer redress If a representative of the Commission requests
in writing any such information in Defendants possession custody or
control related to redress Defendant must provide it in the form prescribed
by the Commission within 14 business days
The Parties anticipate that consumers may make inquiries to
Defendant regarding consumer funds subject to this Order Defendant shall
maintain a record of such contacts including consumer contact information
and shall provide such records to the Commission as required in this Section
IV Following receipt of consumer inquiries that should properly be directed
to the Commission rather than Defendant Defendant shall direct the
consumer to contact the FTC at a number and address specified by the FTC
for this purpose
Page 17 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 17 of 32
ORDER ACKNOWLEDGMENTS
IT IS FURTHER ORDERED that Defendant obtains
acknowledgments of receipt of this Order
A Defendant within 7 days of entry of this Order must submit to
the Commission an acknowledgment of receipt of this Order sworn under
penalty of perjury
B For 5 years after entry of this Order Defendant must deliver
a copy of this Order to (I) all principals officers and directors (2) all
employees agents and representatives with authority to approve
advertising or marketing material on behalf of Defendant for any
Prepaid Product and all employees who supervise the formulation of
advertising and marketing material for any Prepaid Product and (3) any
business entity resulting from any change in structure as set forth in the
Section titled Compliance Reporting Delivery must occur within 7 days
of entry of this Order for current personnel For all others delivery must
occur before they assume their responsibilities
C From each individual or entity to which Defendant delivered
a copy of this Order Defendant must obtain within 30 days a signed
and dated acknowledgment of receipt of this Order (an Order
Acknowledgement) Page 18 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 18 of 32
COMPLIANCE REPORTING
IT IS FURTHER ORDERED that Defendant make timely
submissions to the Commission
A One year after entry of this Order Defendant must submit a
compliance report sworn under penalty of perjury Defendant must
1 identify the primary physical postal and email address
and telephone number as designated points of contact which
representatives of the Commission may use to communicate with Defendant
2 identify all of Defendants businesses by all of their
names telephone numbers and physical postal email and Internet
addresses
3 describe the activities of each business including the
goods and services offered and the means of advertising marketing and
sales
4 describe in detail whether and how Defendant is in
compliance with each Section of this Order and
5 provide a copy of each Order Acknowledgment obtained
pursuant to this Order unless previously submitted to the Commission
B For 20 years after entry of this Order Defendant must submit a
compliance notice sworn under penalty of perjury within 14 days of any
Page 19 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 19 of 32
in the following
1 any designated point of contact or
2 the structure of Defendant or any entity that Defendant
has any ownership interest in or controls directly or indirectly that may
affect compliance obligations arising under this Order including creation
merger sale or dissolution of the entity or any subsidiary parent or
affiliate that engages in any acts or practices subject to this Order
C Defendant must submit to the Commission notice of the filing
of any bankruptcy petition insolvency proceeding or similar proceeding by
or against Defendant within 14 days of its filing
D Any submission to the Commission required by this Order to be
sworn under penalty of perjury must be true and accurate and comply with
28 USC sect 1746 such as by concluding I declare under penalty of perjury
under the laws of the United States of America that the foregoing is true
and correct Executed on [date] and supplying the date signatorys full
name title (if applicable) and signature
E Unless otherwise directed by a Commission representative in
writing all submissions to the Commission pursuant to this Order must be
emailed to DEbriefftcgov or sent by overnight courier (not the US Postal
Service) to Associate Director for Enforcement Bureau of Consumer
Page 20 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 20 of 32
Federal Trade Commission 600 Pennsylvania Avenue NW
Washington DC 20580 The subject line must begin FTC v NetSpend
Corporation Xl 70006
VII RECORDKEEPING
IT IS FURTHER ORDERED that Defendant must create certain
records for 20 years after entry of the Order and retain each such record for
5 years Specifically Defendant must create and retain the following
records in connection with the advertisement marketing promotion
offering for sale sale management or servicing of any Prepaid Product
A accounting records showing the revenues from all such goods
or services sold
B personnel records of Defendant showing for each individual
providing services whether as an employee or otherwise that persons
name addresses telephone numbers job title or position dates of service
and (if applicable) the reason for termination
C records of all consumer complaints whether received directly
or indirectly related to access to funds which shall include but not be
limited to available consumer contact information date of complaint
source of complaint category of complaint and the outcome provided that
this Subparagraph shall apply only to consumer complaints related to
Page 21of26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 21 of 32
to funds received directly or indirectly from a consumer a federal or
state agency the Better Business Bureau State Attorneys General as
well as any consumer lawsuit
D all records necessary to demonstrate full compliance with each
provision of this Order including all submissions to the Commission
E a copy of each unique advertisement or other marketing
material created produced or approved by Defendant and
F records of blocks that restrict consumer access to Prepaid
Products requests by consumers to activate and register Prepaid
Products when submitted directly to Defendant or when records of such
requests are available to Defendant requests by consumers to lift blocks
on Prepaid Products requests by consumers for closure of Prepaid Product
accounts and any subsequent disbursements of funds to consumers
consumer notifications of account errors and disbursements of provisional
credits Provided however that to the extent Defendant does not
maintain records as provided in this Subsection in the ordinary course of
business as of the date of this Order and must implement new record
keeping policies systems or procedures to create them Defendant shall
implement such policies systems or procedures within 90 days after the
date of this Order Provided further that Defendant shall not be required
Page 22 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 22 of 32
create or maintain any record identified in this Subsection if Defendant
demonstrates that it is prohibited by banking law or regulation from
creating or maintaining such record
VIII COMPLIANCE MONITORING
IT IS FURTHER ORDERED that for the purpose of monitoring
Defendants compliance with this Order and any failure to transfer any
assets as required by this Order
A Within 14 days of receipt of a written request from a
representative of the Commission Defendant must submit additional
compliance reports or other requested information which must be sworn
under penalty of perjury and appear for depositions and produce
documents for inspection and copying The Commission is also authorized
to obtain discovery without further leave of court using any of the
procedures prescribed by Federal Rules of Civil Procedure 29 30 (including
telephonic depositions) 31 33 34 36 45 and 69
B For matters concerning this Order the Commission is
authorized to communicate directly with Defendant Defendant must
permit representatives of the Commission to interview any employee or
Page 23 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 23 of 32
person affiliated with Defendant who has agreed to such an
interview The person interviewed may have counsel present
C The Commission may use all other lawful means including
posing through its representatives as consumers suppliers or other
individuals or entities to Defendant or any individual or entity affiliated
with Defendant without the necessity of identification or prior notice
Nothing in this Order limits the Commissions lawful use of compulsory
process pursuant to Sections 9 and 20 of the FTC Act 15 USC sectsect 49
57b-l
IX RETENTION OF JURISDICTION
IT IS FURTHER ORDERED that this Court retains jurisdiction of this
matter for purposes of construction modification and enforcement of this
Order
SO ORDERED this ___ day of ____________ _ 2017
Amy Totenberg UNITED STATES DISTRICT JUDGE
Page 24 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 24 of 32
STIPULATED AND AGREED FOR
PLAINTIFF
FEDERAL TRADE COJM11ISSION
Dated jQH~ S ( 2-6 - - -=--=---------------- ------
7
Mark By fe~~
Glassman Adam M Wesolowski Federal Trade Commission 600 Pennsylvania Avenue NW Mailstop CC-10232 Washington DC 20580 Email mglassmanftcgov awesolowskiftcgov Phone (202) 326-2826 (Glassman) (202) 326-3068 (Wesolowski) Fax (202) 326-3768
By 12rdf-d-cgtltd ~ Robin L Rock (Bar No 629532) Federal Trade Commission 225 Peachtree Street NE Suite 1500 Atlanta GA 30303 Email rrockftcgov Phone (404) 656-1368 Fax (404) 656-1379
Attorneys for Plaintiff FEDERAL TRADE COMMISSION
Page 25 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 25 of 32
DE~gSPEND CORPORATION
Diane By~
McCartnev fv~~
- d Vice President Compliance NETSPEND CORPORATION
MORRISON amp FOERSTER LLP
Steven JVI Kaufmann Natalie Fleming ~olen 2000 Pennsylvania Avenue Vv ashington DC 20006 Telephone (212) 468middot8000 Ekfl 11fm ann~mofocom nilemi]1g_g_ol~n(~mofoco1y~
Sarah N Davis 425 Market Street San Francisco California 94105-2482 Telephone (415) 268-7000 Sarah Do yi s(ahn ofo com
By---~-=-~+----=-1i__~___ Michael B Terry Georgia Bar No 702582 BONDURANl MIXSON amp ELMORE LLP 1201 West Peachtree Street NV Suite 3900 Atlanta GA 30309 Email er1middotvbm elaw99nl (404) 881 middot4100
Attorneys for Defendant NetSpend Corporation
Page 26 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 26 of 32
Case 116-cv-04203-AT Document 41 Filed 033117 Page 27 of 32
Appendix A-1
[ON NETSPEND CORPORATION LETTERHEAD]
IMPORTANT NOTICE TO REMOVE NETSPEND CARD MATERIALS TO COMPLY WITH FEDERAL COURT ORDER
[insert addressee name][insert addressee address]
Dear [Third Party]
In response to a settlement with the Federal Trade Commission NetSpend Corporation (NetSpend) has agreed to a court order prohibiting the use of certain claims in marketing and other materials In accordance with this order NetSpend directs that within sixty (60) days of the date of this letter you stop using any existing NetSpend materials that state that NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval Attached hereto are copies photographs or images of sample materials subject to removal NetSpend willmake revised materials available to you shortly if it has not already provided such materials
Should you have any questions about compliance with this notification please contact [insert NetSpend contact person] Further information about the order can be obtained by visiting wwwftcgov and searching for ldquoNetSpendrdquo
Sincerely
[Name][Title]NetSpend Corporation
Case 116-cv-04203-AT Document 41 Filed 033117 Page 28 of 32
Appendix A-2
[ON NETSPEND CORPORATION LETTERHEAD]
IMPORTANT NOTICE TO UPDATE NETSPEND CARD MATERIALS TO COMPLY WITH FEDERAL COURT ORDER
[insert addressee name][insert addressee address]
Dear [Third Party]
In response to a settlement with the Federal Trade Commission NetSpend Corporation (NetSpend) has agreed to a court order prohibiting the use of certain claims in marketing and other materials In accordance with this order NetSpend [as applicable ndash as successor-in-interest to Skylight Financial Inc] directs that you affix corrective stickers to any existing NetSpend materials that state NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval
Enclosed with this letter are corrective stickers stating ldquoYou must meet identity verification requirements to activate and use the cardrdquo These stickers must be placed on the NetSpend materials in close proximity to such statements that NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval If the foregoingstatements are contained within an envelope or package that is already sealed then the sticker shall be placed in a prominent position on the outside of the envelope or package Attached also are copies photographs or images of sample materials illustrating the required correction
Should you have any questions about compliance with this notification please contact [insert NetSpend contact person] Further information about the order can be obtained by visiting wwwftcgov and searching for ldquoNetSpendrdquo
Sincerely
[Name][Title]NetSpend Corporation
Case 116-cv-04203-AT Document 41 Filed 033117 Page 29 of 32
Appendix B
Subject line of e-mail NetSpend [or such other NetSpend brand eg PayPal] Card Refunds Available
You may be eligible for a refund related to your [Branded Name (as applicable)] prepaid card [managed by NetSpend (as necessary where a branded name is used)] Under a settlement with the Federal Trade Commission NetSpend will refund certain customers
If you wish to receive your money via check complete this personalized request form [REQUEST FORM (Link to Personalized Survey per customer) Samplehttpswwwnetspendcomaccountcs surveymid= 1052492523ampsid=601] by ltDate of End of Redress Periodgt
After ltDate of End of Redress Periodgt you will need to contact both the FTC and NetSpend to receive your funds
NetSpend will mail checks within 30 days of receiving a valid request form
If instead of getting a check by filling out the form linked above you would like us to send your refund to an existing NetSpend card please contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 You may be required to submit identification documents to NetSpend to activate your card and access your money
For more information about the program visit wwwftcgovNetSpend If youhave any problems receiving your funds please let the FTC know by emailing NetSpendftcgov
Online Check Request Form
Under the terms of NetSpendrsquos settlement with the Federal Trade Commission [link to wwwftcgovNetSpend] NetSpend will refund certain customers who loaded money on cards
How you would like to receive your money
Case 116-cv-04203-AT Document 41 Filed 033117 Page 30 of 32
_____ Close my account and mail a check to the address on my account
_____ Close my account and mail a check to another address (please enter your new address below)
_____I would like to contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 to receive my funds via a NetSpend card I understand that with this option I may be required to submit identification documents to NetSpend to activate my card and access my money
New Address Street
City
State
Zip
Phone
Finish
Case 116-cv-04203-AT Document 41 Filed 033117 Page 31 of 32
Subject line of mailed letter NetSpend [or applicable NetSpend brand eg PayPal] Card Refunds Available
You may be eligible for a refund related to your [Brand Name (as applicable)] prepaid card [managed by NetSpend (as necessary where a branded name is used)] Under a settlement with the Federal Trade Commission NetSpend willrefund certain customers
If you wish to receive your money via check complete the personalized formbelow by ltDate of End of Redress Periodgt and return it to NetSpend in the enclosed envelope If you received a refund notice from NetSpend by email you may instead go to the personalized request form linked in the email to request your refund
After ltDate of End of Redress Periodgt you will need to contact both the FTC and NetSpend to receive your funds
NetSpend will mail checks within 30 days of receiving a valid request form
For more information about the program visit wwwftcgovNetSpend If youhave any problems receiving your funds please let the FTC know by emailing NetSpendftcgov
Reference Number _________ Name ltFirst Namegt ltLast Namegt Account Address ltStreetgt ltCitygt ltStategt ltZipgt
Check Request
_____ Close my account and mail a check to the address on my account
_____ Close my account and mail a check to another address (please enter your new address below)
Street
City
Case 116-cv-04203-AT Document 41 Filed 033117 Page 32 of 32
State
Zip
Phone
_____I would like to contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 to receive my funds via a NetSpend card I understand that with this option I may be required to submit identification documents to NetSpend to activate my card and access my money
Enclosure Envelope addressed to NetSpend with postage prepaid
Defendant must submit to the Commission may be used for
collecting and reporting on any delinquent amount arising out of this Order
in accordance with 31 USC sect7701
L All money paid to the Commission pursuant to this Order may be
deposited into a fund administered by the Commission or its designee to be
used for equitable relief including consumer redress and any attendant
expenses for the administration of any redress fund If a representative of
the Commission decides that direct redress to consumers is wholly or
partially impracticable or money remains after redress is completed the
Commission may apply any remaining money for such other equitable relief
(including consumer information remedies) as it determines to be reasonably
related to Defendants practices alleged in the Complaint Any money not
used for such equitable relief is to be deposited to the US Treasury as
disgorgement Defendant has no right to challenge any actions the
Commission or its representatives may take pursuant to this Subsection
IV CUSTOMER INFORMATION
IT IS FURTHER ORDERED that Defendant Defendants officers
agents employees and attorneys and all other persons in active concert
or participation with any of them who receive actual notice of this Order
Page 16 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 16 of 32
acting directly or indirectly are permanently restrained and
enjoined from failing to provide customer information in its possession
custody or control that is sufficient to enable the Commission to efficiently
administer consumer redress including consumer name phone number
address other contact information account number and account balance or
other reasonably available information that the Commission requests to
effectuate consumer redress If a representative of the Commission requests
in writing any such information in Defendants possession custody or
control related to redress Defendant must provide it in the form prescribed
by the Commission within 14 business days
The Parties anticipate that consumers may make inquiries to
Defendant regarding consumer funds subject to this Order Defendant shall
maintain a record of such contacts including consumer contact information
and shall provide such records to the Commission as required in this Section
IV Following receipt of consumer inquiries that should properly be directed
to the Commission rather than Defendant Defendant shall direct the
consumer to contact the FTC at a number and address specified by the FTC
for this purpose
Page 17 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 17 of 32
ORDER ACKNOWLEDGMENTS
IT IS FURTHER ORDERED that Defendant obtains
acknowledgments of receipt of this Order
A Defendant within 7 days of entry of this Order must submit to
the Commission an acknowledgment of receipt of this Order sworn under
penalty of perjury
B For 5 years after entry of this Order Defendant must deliver
a copy of this Order to (I) all principals officers and directors (2) all
employees agents and representatives with authority to approve
advertising or marketing material on behalf of Defendant for any
Prepaid Product and all employees who supervise the formulation of
advertising and marketing material for any Prepaid Product and (3) any
business entity resulting from any change in structure as set forth in the
Section titled Compliance Reporting Delivery must occur within 7 days
of entry of this Order for current personnel For all others delivery must
occur before they assume their responsibilities
C From each individual or entity to which Defendant delivered
a copy of this Order Defendant must obtain within 30 days a signed
and dated acknowledgment of receipt of this Order (an Order
Acknowledgement) Page 18 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 18 of 32
COMPLIANCE REPORTING
IT IS FURTHER ORDERED that Defendant make timely
submissions to the Commission
A One year after entry of this Order Defendant must submit a
compliance report sworn under penalty of perjury Defendant must
1 identify the primary physical postal and email address
and telephone number as designated points of contact which
representatives of the Commission may use to communicate with Defendant
2 identify all of Defendants businesses by all of their
names telephone numbers and physical postal email and Internet
addresses
3 describe the activities of each business including the
goods and services offered and the means of advertising marketing and
sales
4 describe in detail whether and how Defendant is in
compliance with each Section of this Order and
5 provide a copy of each Order Acknowledgment obtained
pursuant to this Order unless previously submitted to the Commission
B For 20 years after entry of this Order Defendant must submit a
compliance notice sworn under penalty of perjury within 14 days of any
Page 19 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 19 of 32
in the following
1 any designated point of contact or
2 the structure of Defendant or any entity that Defendant
has any ownership interest in or controls directly or indirectly that may
affect compliance obligations arising under this Order including creation
merger sale or dissolution of the entity or any subsidiary parent or
affiliate that engages in any acts or practices subject to this Order
C Defendant must submit to the Commission notice of the filing
of any bankruptcy petition insolvency proceeding or similar proceeding by
or against Defendant within 14 days of its filing
D Any submission to the Commission required by this Order to be
sworn under penalty of perjury must be true and accurate and comply with
28 USC sect 1746 such as by concluding I declare under penalty of perjury
under the laws of the United States of America that the foregoing is true
and correct Executed on [date] and supplying the date signatorys full
name title (if applicable) and signature
E Unless otherwise directed by a Commission representative in
writing all submissions to the Commission pursuant to this Order must be
emailed to DEbriefftcgov or sent by overnight courier (not the US Postal
Service) to Associate Director for Enforcement Bureau of Consumer
Page 20 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 20 of 32
Federal Trade Commission 600 Pennsylvania Avenue NW
Washington DC 20580 The subject line must begin FTC v NetSpend
Corporation Xl 70006
VII RECORDKEEPING
IT IS FURTHER ORDERED that Defendant must create certain
records for 20 years after entry of the Order and retain each such record for
5 years Specifically Defendant must create and retain the following
records in connection with the advertisement marketing promotion
offering for sale sale management or servicing of any Prepaid Product
A accounting records showing the revenues from all such goods
or services sold
B personnel records of Defendant showing for each individual
providing services whether as an employee or otherwise that persons
name addresses telephone numbers job title or position dates of service
and (if applicable) the reason for termination
C records of all consumer complaints whether received directly
or indirectly related to access to funds which shall include but not be
limited to available consumer contact information date of complaint
source of complaint category of complaint and the outcome provided that
this Subparagraph shall apply only to consumer complaints related to
Page 21of26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 21 of 32
to funds received directly or indirectly from a consumer a federal or
state agency the Better Business Bureau State Attorneys General as
well as any consumer lawsuit
D all records necessary to demonstrate full compliance with each
provision of this Order including all submissions to the Commission
E a copy of each unique advertisement or other marketing
material created produced or approved by Defendant and
F records of blocks that restrict consumer access to Prepaid
Products requests by consumers to activate and register Prepaid
Products when submitted directly to Defendant or when records of such
requests are available to Defendant requests by consumers to lift blocks
on Prepaid Products requests by consumers for closure of Prepaid Product
accounts and any subsequent disbursements of funds to consumers
consumer notifications of account errors and disbursements of provisional
credits Provided however that to the extent Defendant does not
maintain records as provided in this Subsection in the ordinary course of
business as of the date of this Order and must implement new record
keeping policies systems or procedures to create them Defendant shall
implement such policies systems or procedures within 90 days after the
date of this Order Provided further that Defendant shall not be required
Page 22 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 22 of 32
create or maintain any record identified in this Subsection if Defendant
demonstrates that it is prohibited by banking law or regulation from
creating or maintaining such record
VIII COMPLIANCE MONITORING
IT IS FURTHER ORDERED that for the purpose of monitoring
Defendants compliance with this Order and any failure to transfer any
assets as required by this Order
A Within 14 days of receipt of a written request from a
representative of the Commission Defendant must submit additional
compliance reports or other requested information which must be sworn
under penalty of perjury and appear for depositions and produce
documents for inspection and copying The Commission is also authorized
to obtain discovery without further leave of court using any of the
procedures prescribed by Federal Rules of Civil Procedure 29 30 (including
telephonic depositions) 31 33 34 36 45 and 69
B For matters concerning this Order the Commission is
authorized to communicate directly with Defendant Defendant must
permit representatives of the Commission to interview any employee or
Page 23 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 23 of 32
person affiliated with Defendant who has agreed to such an
interview The person interviewed may have counsel present
C The Commission may use all other lawful means including
posing through its representatives as consumers suppliers or other
individuals or entities to Defendant or any individual or entity affiliated
with Defendant without the necessity of identification or prior notice
Nothing in this Order limits the Commissions lawful use of compulsory
process pursuant to Sections 9 and 20 of the FTC Act 15 USC sectsect 49
57b-l
IX RETENTION OF JURISDICTION
IT IS FURTHER ORDERED that this Court retains jurisdiction of this
matter for purposes of construction modification and enforcement of this
Order
SO ORDERED this ___ day of ____________ _ 2017
Amy Totenberg UNITED STATES DISTRICT JUDGE
Page 24 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 24 of 32
STIPULATED AND AGREED FOR
PLAINTIFF
FEDERAL TRADE COJM11ISSION
Dated jQH~ S ( 2-6 - - -=--=---------------- ------
7
Mark By fe~~
Glassman Adam M Wesolowski Federal Trade Commission 600 Pennsylvania Avenue NW Mailstop CC-10232 Washington DC 20580 Email mglassmanftcgov awesolowskiftcgov Phone (202) 326-2826 (Glassman) (202) 326-3068 (Wesolowski) Fax (202) 326-3768
By 12rdf-d-cgtltd ~ Robin L Rock (Bar No 629532) Federal Trade Commission 225 Peachtree Street NE Suite 1500 Atlanta GA 30303 Email rrockftcgov Phone (404) 656-1368 Fax (404) 656-1379
Attorneys for Plaintiff FEDERAL TRADE COMMISSION
Page 25 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 25 of 32
DE~gSPEND CORPORATION
Diane By~
McCartnev fv~~
- d Vice President Compliance NETSPEND CORPORATION
MORRISON amp FOERSTER LLP
Steven JVI Kaufmann Natalie Fleming ~olen 2000 Pennsylvania Avenue Vv ashington DC 20006 Telephone (212) 468middot8000 Ekfl 11fm ann~mofocom nilemi]1g_g_ol~n(~mofoco1y~
Sarah N Davis 425 Market Street San Francisco California 94105-2482 Telephone (415) 268-7000 Sarah Do yi s(ahn ofo com
By---~-=-~+----=-1i__~___ Michael B Terry Georgia Bar No 702582 BONDURANl MIXSON amp ELMORE LLP 1201 West Peachtree Street NV Suite 3900 Atlanta GA 30309 Email er1middotvbm elaw99nl (404) 881 middot4100
Attorneys for Defendant NetSpend Corporation
Page 26 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 26 of 32
Case 116-cv-04203-AT Document 41 Filed 033117 Page 27 of 32
Appendix A-1
[ON NETSPEND CORPORATION LETTERHEAD]
IMPORTANT NOTICE TO REMOVE NETSPEND CARD MATERIALS TO COMPLY WITH FEDERAL COURT ORDER
[insert addressee name][insert addressee address]
Dear [Third Party]
In response to a settlement with the Federal Trade Commission NetSpend Corporation (NetSpend) has agreed to a court order prohibiting the use of certain claims in marketing and other materials In accordance with this order NetSpend directs that within sixty (60) days of the date of this letter you stop using any existing NetSpend materials that state that NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval Attached hereto are copies photographs or images of sample materials subject to removal NetSpend willmake revised materials available to you shortly if it has not already provided such materials
Should you have any questions about compliance with this notification please contact [insert NetSpend contact person] Further information about the order can be obtained by visiting wwwftcgov and searching for ldquoNetSpendrdquo
Sincerely
[Name][Title]NetSpend Corporation
Case 116-cv-04203-AT Document 41 Filed 033117 Page 28 of 32
Appendix A-2
[ON NETSPEND CORPORATION LETTERHEAD]
IMPORTANT NOTICE TO UPDATE NETSPEND CARD MATERIALS TO COMPLY WITH FEDERAL COURT ORDER
[insert addressee name][insert addressee address]
Dear [Third Party]
In response to a settlement with the Federal Trade Commission NetSpend Corporation (NetSpend) has agreed to a court order prohibiting the use of certain claims in marketing and other materials In accordance with this order NetSpend [as applicable ndash as successor-in-interest to Skylight Financial Inc] directs that you affix corrective stickers to any existing NetSpend materials that state NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval
Enclosed with this letter are corrective stickers stating ldquoYou must meet identity verification requirements to activate and use the cardrdquo These stickers must be placed on the NetSpend materials in close proximity to such statements that NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval If the foregoingstatements are contained within an envelope or package that is already sealed then the sticker shall be placed in a prominent position on the outside of the envelope or package Attached also are copies photographs or images of sample materials illustrating the required correction
Should you have any questions about compliance with this notification please contact [insert NetSpend contact person] Further information about the order can be obtained by visiting wwwftcgov and searching for ldquoNetSpendrdquo
Sincerely
[Name][Title]NetSpend Corporation
Case 116-cv-04203-AT Document 41 Filed 033117 Page 29 of 32
Appendix B
Subject line of e-mail NetSpend [or such other NetSpend brand eg PayPal] Card Refunds Available
You may be eligible for a refund related to your [Branded Name (as applicable)] prepaid card [managed by NetSpend (as necessary where a branded name is used)] Under a settlement with the Federal Trade Commission NetSpend will refund certain customers
If you wish to receive your money via check complete this personalized request form [REQUEST FORM (Link to Personalized Survey per customer) Samplehttpswwwnetspendcomaccountcs surveymid= 1052492523ampsid=601] by ltDate of End of Redress Periodgt
After ltDate of End of Redress Periodgt you will need to contact both the FTC and NetSpend to receive your funds
NetSpend will mail checks within 30 days of receiving a valid request form
If instead of getting a check by filling out the form linked above you would like us to send your refund to an existing NetSpend card please contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 You may be required to submit identification documents to NetSpend to activate your card and access your money
For more information about the program visit wwwftcgovNetSpend If youhave any problems receiving your funds please let the FTC know by emailing NetSpendftcgov
Online Check Request Form
Under the terms of NetSpendrsquos settlement with the Federal Trade Commission [link to wwwftcgovNetSpend] NetSpend will refund certain customers who loaded money on cards
How you would like to receive your money
Case 116-cv-04203-AT Document 41 Filed 033117 Page 30 of 32
_____ Close my account and mail a check to the address on my account
_____ Close my account and mail a check to another address (please enter your new address below)
_____I would like to contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 to receive my funds via a NetSpend card I understand that with this option I may be required to submit identification documents to NetSpend to activate my card and access my money
New Address Street
City
State
Zip
Phone
Finish
Case 116-cv-04203-AT Document 41 Filed 033117 Page 31 of 32
Subject line of mailed letter NetSpend [or applicable NetSpend brand eg PayPal] Card Refunds Available
You may be eligible for a refund related to your [Brand Name (as applicable)] prepaid card [managed by NetSpend (as necessary where a branded name is used)] Under a settlement with the Federal Trade Commission NetSpend willrefund certain customers
If you wish to receive your money via check complete the personalized formbelow by ltDate of End of Redress Periodgt and return it to NetSpend in the enclosed envelope If you received a refund notice from NetSpend by email you may instead go to the personalized request form linked in the email to request your refund
After ltDate of End of Redress Periodgt you will need to contact both the FTC and NetSpend to receive your funds
NetSpend will mail checks within 30 days of receiving a valid request form
For more information about the program visit wwwftcgovNetSpend If youhave any problems receiving your funds please let the FTC know by emailing NetSpendftcgov
Reference Number _________ Name ltFirst Namegt ltLast Namegt Account Address ltStreetgt ltCitygt ltStategt ltZipgt
Check Request
_____ Close my account and mail a check to the address on my account
_____ Close my account and mail a check to another address (please enter your new address below)
Street
City
Case 116-cv-04203-AT Document 41 Filed 033117 Page 32 of 32
State
Zip
Phone
_____I would like to contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 to receive my funds via a NetSpend card I understand that with this option I may be required to submit identification documents to NetSpend to activate my card and access my money
Enclosure Envelope addressed to NetSpend with postage prepaid
acting directly or indirectly are permanently restrained and
enjoined from failing to provide customer information in its possession
custody or control that is sufficient to enable the Commission to efficiently
administer consumer redress including consumer name phone number
address other contact information account number and account balance or
other reasonably available information that the Commission requests to
effectuate consumer redress If a representative of the Commission requests
in writing any such information in Defendants possession custody or
control related to redress Defendant must provide it in the form prescribed
by the Commission within 14 business days
The Parties anticipate that consumers may make inquiries to
Defendant regarding consumer funds subject to this Order Defendant shall
maintain a record of such contacts including consumer contact information
and shall provide such records to the Commission as required in this Section
IV Following receipt of consumer inquiries that should properly be directed
to the Commission rather than Defendant Defendant shall direct the
consumer to contact the FTC at a number and address specified by the FTC
for this purpose
Page 17 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 17 of 32
ORDER ACKNOWLEDGMENTS
IT IS FURTHER ORDERED that Defendant obtains
acknowledgments of receipt of this Order
A Defendant within 7 days of entry of this Order must submit to
the Commission an acknowledgment of receipt of this Order sworn under
penalty of perjury
B For 5 years after entry of this Order Defendant must deliver
a copy of this Order to (I) all principals officers and directors (2) all
employees agents and representatives with authority to approve
advertising or marketing material on behalf of Defendant for any
Prepaid Product and all employees who supervise the formulation of
advertising and marketing material for any Prepaid Product and (3) any
business entity resulting from any change in structure as set forth in the
Section titled Compliance Reporting Delivery must occur within 7 days
of entry of this Order for current personnel For all others delivery must
occur before they assume their responsibilities
C From each individual or entity to which Defendant delivered
a copy of this Order Defendant must obtain within 30 days a signed
and dated acknowledgment of receipt of this Order (an Order
Acknowledgement) Page 18 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 18 of 32
COMPLIANCE REPORTING
IT IS FURTHER ORDERED that Defendant make timely
submissions to the Commission
A One year after entry of this Order Defendant must submit a
compliance report sworn under penalty of perjury Defendant must
1 identify the primary physical postal and email address
and telephone number as designated points of contact which
representatives of the Commission may use to communicate with Defendant
2 identify all of Defendants businesses by all of their
names telephone numbers and physical postal email and Internet
addresses
3 describe the activities of each business including the
goods and services offered and the means of advertising marketing and
sales
4 describe in detail whether and how Defendant is in
compliance with each Section of this Order and
5 provide a copy of each Order Acknowledgment obtained
pursuant to this Order unless previously submitted to the Commission
B For 20 years after entry of this Order Defendant must submit a
compliance notice sworn under penalty of perjury within 14 days of any
Page 19 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 19 of 32
in the following
1 any designated point of contact or
2 the structure of Defendant or any entity that Defendant
has any ownership interest in or controls directly or indirectly that may
affect compliance obligations arising under this Order including creation
merger sale or dissolution of the entity or any subsidiary parent or
affiliate that engages in any acts or practices subject to this Order
C Defendant must submit to the Commission notice of the filing
of any bankruptcy petition insolvency proceeding or similar proceeding by
or against Defendant within 14 days of its filing
D Any submission to the Commission required by this Order to be
sworn under penalty of perjury must be true and accurate and comply with
28 USC sect 1746 such as by concluding I declare under penalty of perjury
under the laws of the United States of America that the foregoing is true
and correct Executed on [date] and supplying the date signatorys full
name title (if applicable) and signature
E Unless otherwise directed by a Commission representative in
writing all submissions to the Commission pursuant to this Order must be
emailed to DEbriefftcgov or sent by overnight courier (not the US Postal
Service) to Associate Director for Enforcement Bureau of Consumer
Page 20 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 20 of 32
Federal Trade Commission 600 Pennsylvania Avenue NW
Washington DC 20580 The subject line must begin FTC v NetSpend
Corporation Xl 70006
VII RECORDKEEPING
IT IS FURTHER ORDERED that Defendant must create certain
records for 20 years after entry of the Order and retain each such record for
5 years Specifically Defendant must create and retain the following
records in connection with the advertisement marketing promotion
offering for sale sale management or servicing of any Prepaid Product
A accounting records showing the revenues from all such goods
or services sold
B personnel records of Defendant showing for each individual
providing services whether as an employee or otherwise that persons
name addresses telephone numbers job title or position dates of service
and (if applicable) the reason for termination
C records of all consumer complaints whether received directly
or indirectly related to access to funds which shall include but not be
limited to available consumer contact information date of complaint
source of complaint category of complaint and the outcome provided that
this Subparagraph shall apply only to consumer complaints related to
Page 21of26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 21 of 32
to funds received directly or indirectly from a consumer a federal or
state agency the Better Business Bureau State Attorneys General as
well as any consumer lawsuit
D all records necessary to demonstrate full compliance with each
provision of this Order including all submissions to the Commission
E a copy of each unique advertisement or other marketing
material created produced or approved by Defendant and
F records of blocks that restrict consumer access to Prepaid
Products requests by consumers to activate and register Prepaid
Products when submitted directly to Defendant or when records of such
requests are available to Defendant requests by consumers to lift blocks
on Prepaid Products requests by consumers for closure of Prepaid Product
accounts and any subsequent disbursements of funds to consumers
consumer notifications of account errors and disbursements of provisional
credits Provided however that to the extent Defendant does not
maintain records as provided in this Subsection in the ordinary course of
business as of the date of this Order and must implement new record
keeping policies systems or procedures to create them Defendant shall
implement such policies systems or procedures within 90 days after the
date of this Order Provided further that Defendant shall not be required
Page 22 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 22 of 32
create or maintain any record identified in this Subsection if Defendant
demonstrates that it is prohibited by banking law or regulation from
creating or maintaining such record
VIII COMPLIANCE MONITORING
IT IS FURTHER ORDERED that for the purpose of monitoring
Defendants compliance with this Order and any failure to transfer any
assets as required by this Order
A Within 14 days of receipt of a written request from a
representative of the Commission Defendant must submit additional
compliance reports or other requested information which must be sworn
under penalty of perjury and appear for depositions and produce
documents for inspection and copying The Commission is also authorized
to obtain discovery without further leave of court using any of the
procedures prescribed by Federal Rules of Civil Procedure 29 30 (including
telephonic depositions) 31 33 34 36 45 and 69
B For matters concerning this Order the Commission is
authorized to communicate directly with Defendant Defendant must
permit representatives of the Commission to interview any employee or
Page 23 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 23 of 32
person affiliated with Defendant who has agreed to such an
interview The person interviewed may have counsel present
C The Commission may use all other lawful means including
posing through its representatives as consumers suppliers or other
individuals or entities to Defendant or any individual or entity affiliated
with Defendant without the necessity of identification or prior notice
Nothing in this Order limits the Commissions lawful use of compulsory
process pursuant to Sections 9 and 20 of the FTC Act 15 USC sectsect 49
57b-l
IX RETENTION OF JURISDICTION
IT IS FURTHER ORDERED that this Court retains jurisdiction of this
matter for purposes of construction modification and enforcement of this
Order
SO ORDERED this ___ day of ____________ _ 2017
Amy Totenberg UNITED STATES DISTRICT JUDGE
Page 24 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 24 of 32
STIPULATED AND AGREED FOR
PLAINTIFF
FEDERAL TRADE COJM11ISSION
Dated jQH~ S ( 2-6 - - -=--=---------------- ------
7
Mark By fe~~
Glassman Adam M Wesolowski Federal Trade Commission 600 Pennsylvania Avenue NW Mailstop CC-10232 Washington DC 20580 Email mglassmanftcgov awesolowskiftcgov Phone (202) 326-2826 (Glassman) (202) 326-3068 (Wesolowski) Fax (202) 326-3768
By 12rdf-d-cgtltd ~ Robin L Rock (Bar No 629532) Federal Trade Commission 225 Peachtree Street NE Suite 1500 Atlanta GA 30303 Email rrockftcgov Phone (404) 656-1368 Fax (404) 656-1379
Attorneys for Plaintiff FEDERAL TRADE COMMISSION
Page 25 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 25 of 32
DE~gSPEND CORPORATION
Diane By~
McCartnev fv~~
- d Vice President Compliance NETSPEND CORPORATION
MORRISON amp FOERSTER LLP
Steven JVI Kaufmann Natalie Fleming ~olen 2000 Pennsylvania Avenue Vv ashington DC 20006 Telephone (212) 468middot8000 Ekfl 11fm ann~mofocom nilemi]1g_g_ol~n(~mofoco1y~
Sarah N Davis 425 Market Street San Francisco California 94105-2482 Telephone (415) 268-7000 Sarah Do yi s(ahn ofo com
By---~-=-~+----=-1i__~___ Michael B Terry Georgia Bar No 702582 BONDURANl MIXSON amp ELMORE LLP 1201 West Peachtree Street NV Suite 3900 Atlanta GA 30309 Email er1middotvbm elaw99nl (404) 881 middot4100
Attorneys for Defendant NetSpend Corporation
Page 26 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 26 of 32
Case 116-cv-04203-AT Document 41 Filed 033117 Page 27 of 32
Appendix A-1
[ON NETSPEND CORPORATION LETTERHEAD]
IMPORTANT NOTICE TO REMOVE NETSPEND CARD MATERIALS TO COMPLY WITH FEDERAL COURT ORDER
[insert addressee name][insert addressee address]
Dear [Third Party]
In response to a settlement with the Federal Trade Commission NetSpend Corporation (NetSpend) has agreed to a court order prohibiting the use of certain claims in marketing and other materials In accordance with this order NetSpend directs that within sixty (60) days of the date of this letter you stop using any existing NetSpend materials that state that NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval Attached hereto are copies photographs or images of sample materials subject to removal NetSpend willmake revised materials available to you shortly if it has not already provided such materials
Should you have any questions about compliance with this notification please contact [insert NetSpend contact person] Further information about the order can be obtained by visiting wwwftcgov and searching for ldquoNetSpendrdquo
Sincerely
[Name][Title]NetSpend Corporation
Case 116-cv-04203-AT Document 41 Filed 033117 Page 28 of 32
Appendix A-2
[ON NETSPEND CORPORATION LETTERHEAD]
IMPORTANT NOTICE TO UPDATE NETSPEND CARD MATERIALS TO COMPLY WITH FEDERAL COURT ORDER
[insert addressee name][insert addressee address]
Dear [Third Party]
In response to a settlement with the Federal Trade Commission NetSpend Corporation (NetSpend) has agreed to a court order prohibiting the use of certain claims in marketing and other materials In accordance with this order NetSpend [as applicable ndash as successor-in-interest to Skylight Financial Inc] directs that you affix corrective stickers to any existing NetSpend materials that state NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval
Enclosed with this letter are corrective stickers stating ldquoYou must meet identity verification requirements to activate and use the cardrdquo These stickers must be placed on the NetSpend materials in close proximity to such statements that NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval If the foregoingstatements are contained within an envelope or package that is already sealed then the sticker shall be placed in a prominent position on the outside of the envelope or package Attached also are copies photographs or images of sample materials illustrating the required correction
Should you have any questions about compliance with this notification please contact [insert NetSpend contact person] Further information about the order can be obtained by visiting wwwftcgov and searching for ldquoNetSpendrdquo
Sincerely
[Name][Title]NetSpend Corporation
Case 116-cv-04203-AT Document 41 Filed 033117 Page 29 of 32
Appendix B
Subject line of e-mail NetSpend [or such other NetSpend brand eg PayPal] Card Refunds Available
You may be eligible for a refund related to your [Branded Name (as applicable)] prepaid card [managed by NetSpend (as necessary where a branded name is used)] Under a settlement with the Federal Trade Commission NetSpend will refund certain customers
If you wish to receive your money via check complete this personalized request form [REQUEST FORM (Link to Personalized Survey per customer) Samplehttpswwwnetspendcomaccountcs surveymid= 1052492523ampsid=601] by ltDate of End of Redress Periodgt
After ltDate of End of Redress Periodgt you will need to contact both the FTC and NetSpend to receive your funds
NetSpend will mail checks within 30 days of receiving a valid request form
If instead of getting a check by filling out the form linked above you would like us to send your refund to an existing NetSpend card please contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 You may be required to submit identification documents to NetSpend to activate your card and access your money
For more information about the program visit wwwftcgovNetSpend If youhave any problems receiving your funds please let the FTC know by emailing NetSpendftcgov
Online Check Request Form
Under the terms of NetSpendrsquos settlement with the Federal Trade Commission [link to wwwftcgovNetSpend] NetSpend will refund certain customers who loaded money on cards
How you would like to receive your money
Case 116-cv-04203-AT Document 41 Filed 033117 Page 30 of 32
_____ Close my account and mail a check to the address on my account
_____ Close my account and mail a check to another address (please enter your new address below)
_____I would like to contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 to receive my funds via a NetSpend card I understand that with this option I may be required to submit identification documents to NetSpend to activate my card and access my money
New Address Street
City
State
Zip
Phone
Finish
Case 116-cv-04203-AT Document 41 Filed 033117 Page 31 of 32
Subject line of mailed letter NetSpend [or applicable NetSpend brand eg PayPal] Card Refunds Available
You may be eligible for a refund related to your [Brand Name (as applicable)] prepaid card [managed by NetSpend (as necessary where a branded name is used)] Under a settlement with the Federal Trade Commission NetSpend willrefund certain customers
If you wish to receive your money via check complete the personalized formbelow by ltDate of End of Redress Periodgt and return it to NetSpend in the enclosed envelope If you received a refund notice from NetSpend by email you may instead go to the personalized request form linked in the email to request your refund
After ltDate of End of Redress Periodgt you will need to contact both the FTC and NetSpend to receive your funds
NetSpend will mail checks within 30 days of receiving a valid request form
For more information about the program visit wwwftcgovNetSpend If youhave any problems receiving your funds please let the FTC know by emailing NetSpendftcgov
Reference Number _________ Name ltFirst Namegt ltLast Namegt Account Address ltStreetgt ltCitygt ltStategt ltZipgt
Check Request
_____ Close my account and mail a check to the address on my account
_____ Close my account and mail a check to another address (please enter your new address below)
Street
City
Case 116-cv-04203-AT Document 41 Filed 033117 Page 32 of 32
State
Zip
Phone
_____I would like to contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 to receive my funds via a NetSpend card I understand that with this option I may be required to submit identification documents to NetSpend to activate my card and access my money
Enclosure Envelope addressed to NetSpend with postage prepaid
ORDER ACKNOWLEDGMENTS
IT IS FURTHER ORDERED that Defendant obtains
acknowledgments of receipt of this Order
A Defendant within 7 days of entry of this Order must submit to
the Commission an acknowledgment of receipt of this Order sworn under
penalty of perjury
B For 5 years after entry of this Order Defendant must deliver
a copy of this Order to (I) all principals officers and directors (2) all
employees agents and representatives with authority to approve
advertising or marketing material on behalf of Defendant for any
Prepaid Product and all employees who supervise the formulation of
advertising and marketing material for any Prepaid Product and (3) any
business entity resulting from any change in structure as set forth in the
Section titled Compliance Reporting Delivery must occur within 7 days
of entry of this Order for current personnel For all others delivery must
occur before they assume their responsibilities
C From each individual or entity to which Defendant delivered
a copy of this Order Defendant must obtain within 30 days a signed
and dated acknowledgment of receipt of this Order (an Order
Acknowledgement) Page 18 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 18 of 32
COMPLIANCE REPORTING
IT IS FURTHER ORDERED that Defendant make timely
submissions to the Commission
A One year after entry of this Order Defendant must submit a
compliance report sworn under penalty of perjury Defendant must
1 identify the primary physical postal and email address
and telephone number as designated points of contact which
representatives of the Commission may use to communicate with Defendant
2 identify all of Defendants businesses by all of their
names telephone numbers and physical postal email and Internet
addresses
3 describe the activities of each business including the
goods and services offered and the means of advertising marketing and
sales
4 describe in detail whether and how Defendant is in
compliance with each Section of this Order and
5 provide a copy of each Order Acknowledgment obtained
pursuant to this Order unless previously submitted to the Commission
B For 20 years after entry of this Order Defendant must submit a
compliance notice sworn under penalty of perjury within 14 days of any
Page 19 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 19 of 32
in the following
1 any designated point of contact or
2 the structure of Defendant or any entity that Defendant
has any ownership interest in or controls directly or indirectly that may
affect compliance obligations arising under this Order including creation
merger sale or dissolution of the entity or any subsidiary parent or
affiliate that engages in any acts or practices subject to this Order
C Defendant must submit to the Commission notice of the filing
of any bankruptcy petition insolvency proceeding or similar proceeding by
or against Defendant within 14 days of its filing
D Any submission to the Commission required by this Order to be
sworn under penalty of perjury must be true and accurate and comply with
28 USC sect 1746 such as by concluding I declare under penalty of perjury
under the laws of the United States of America that the foregoing is true
and correct Executed on [date] and supplying the date signatorys full
name title (if applicable) and signature
E Unless otherwise directed by a Commission representative in
writing all submissions to the Commission pursuant to this Order must be
emailed to DEbriefftcgov or sent by overnight courier (not the US Postal
Service) to Associate Director for Enforcement Bureau of Consumer
Page 20 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 20 of 32
Federal Trade Commission 600 Pennsylvania Avenue NW
Washington DC 20580 The subject line must begin FTC v NetSpend
Corporation Xl 70006
VII RECORDKEEPING
IT IS FURTHER ORDERED that Defendant must create certain
records for 20 years after entry of the Order and retain each such record for
5 years Specifically Defendant must create and retain the following
records in connection with the advertisement marketing promotion
offering for sale sale management or servicing of any Prepaid Product
A accounting records showing the revenues from all such goods
or services sold
B personnel records of Defendant showing for each individual
providing services whether as an employee or otherwise that persons
name addresses telephone numbers job title or position dates of service
and (if applicable) the reason for termination
C records of all consumer complaints whether received directly
or indirectly related to access to funds which shall include but not be
limited to available consumer contact information date of complaint
source of complaint category of complaint and the outcome provided that
this Subparagraph shall apply only to consumer complaints related to
Page 21of26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 21 of 32
to funds received directly or indirectly from a consumer a federal or
state agency the Better Business Bureau State Attorneys General as
well as any consumer lawsuit
D all records necessary to demonstrate full compliance with each
provision of this Order including all submissions to the Commission
E a copy of each unique advertisement or other marketing
material created produced or approved by Defendant and
F records of blocks that restrict consumer access to Prepaid
Products requests by consumers to activate and register Prepaid
Products when submitted directly to Defendant or when records of such
requests are available to Defendant requests by consumers to lift blocks
on Prepaid Products requests by consumers for closure of Prepaid Product
accounts and any subsequent disbursements of funds to consumers
consumer notifications of account errors and disbursements of provisional
credits Provided however that to the extent Defendant does not
maintain records as provided in this Subsection in the ordinary course of
business as of the date of this Order and must implement new record
keeping policies systems or procedures to create them Defendant shall
implement such policies systems or procedures within 90 days after the
date of this Order Provided further that Defendant shall not be required
Page 22 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 22 of 32
create or maintain any record identified in this Subsection if Defendant
demonstrates that it is prohibited by banking law or regulation from
creating or maintaining such record
VIII COMPLIANCE MONITORING
IT IS FURTHER ORDERED that for the purpose of monitoring
Defendants compliance with this Order and any failure to transfer any
assets as required by this Order
A Within 14 days of receipt of a written request from a
representative of the Commission Defendant must submit additional
compliance reports or other requested information which must be sworn
under penalty of perjury and appear for depositions and produce
documents for inspection and copying The Commission is also authorized
to obtain discovery without further leave of court using any of the
procedures prescribed by Federal Rules of Civil Procedure 29 30 (including
telephonic depositions) 31 33 34 36 45 and 69
B For matters concerning this Order the Commission is
authorized to communicate directly with Defendant Defendant must
permit representatives of the Commission to interview any employee or
Page 23 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 23 of 32
person affiliated with Defendant who has agreed to such an
interview The person interviewed may have counsel present
C The Commission may use all other lawful means including
posing through its representatives as consumers suppliers or other
individuals or entities to Defendant or any individual or entity affiliated
with Defendant without the necessity of identification or prior notice
Nothing in this Order limits the Commissions lawful use of compulsory
process pursuant to Sections 9 and 20 of the FTC Act 15 USC sectsect 49
57b-l
IX RETENTION OF JURISDICTION
IT IS FURTHER ORDERED that this Court retains jurisdiction of this
matter for purposes of construction modification and enforcement of this
Order
SO ORDERED this ___ day of ____________ _ 2017
Amy Totenberg UNITED STATES DISTRICT JUDGE
Page 24 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 24 of 32
STIPULATED AND AGREED FOR
PLAINTIFF
FEDERAL TRADE COJM11ISSION
Dated jQH~ S ( 2-6 - - -=--=---------------- ------
7
Mark By fe~~
Glassman Adam M Wesolowski Federal Trade Commission 600 Pennsylvania Avenue NW Mailstop CC-10232 Washington DC 20580 Email mglassmanftcgov awesolowskiftcgov Phone (202) 326-2826 (Glassman) (202) 326-3068 (Wesolowski) Fax (202) 326-3768
By 12rdf-d-cgtltd ~ Robin L Rock (Bar No 629532) Federal Trade Commission 225 Peachtree Street NE Suite 1500 Atlanta GA 30303 Email rrockftcgov Phone (404) 656-1368 Fax (404) 656-1379
Attorneys for Plaintiff FEDERAL TRADE COMMISSION
Page 25 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 25 of 32
DE~gSPEND CORPORATION
Diane By~
McCartnev fv~~
- d Vice President Compliance NETSPEND CORPORATION
MORRISON amp FOERSTER LLP
Steven JVI Kaufmann Natalie Fleming ~olen 2000 Pennsylvania Avenue Vv ashington DC 20006 Telephone (212) 468middot8000 Ekfl 11fm ann~mofocom nilemi]1g_g_ol~n(~mofoco1y~
Sarah N Davis 425 Market Street San Francisco California 94105-2482 Telephone (415) 268-7000 Sarah Do yi s(ahn ofo com
By---~-=-~+----=-1i__~___ Michael B Terry Georgia Bar No 702582 BONDURANl MIXSON amp ELMORE LLP 1201 West Peachtree Street NV Suite 3900 Atlanta GA 30309 Email er1middotvbm elaw99nl (404) 881 middot4100
Attorneys for Defendant NetSpend Corporation
Page 26 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 26 of 32
Case 116-cv-04203-AT Document 41 Filed 033117 Page 27 of 32
Appendix A-1
[ON NETSPEND CORPORATION LETTERHEAD]
IMPORTANT NOTICE TO REMOVE NETSPEND CARD MATERIALS TO COMPLY WITH FEDERAL COURT ORDER
[insert addressee name][insert addressee address]
Dear [Third Party]
In response to a settlement with the Federal Trade Commission NetSpend Corporation (NetSpend) has agreed to a court order prohibiting the use of certain claims in marketing and other materials In accordance with this order NetSpend directs that within sixty (60) days of the date of this letter you stop using any existing NetSpend materials that state that NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval Attached hereto are copies photographs or images of sample materials subject to removal NetSpend willmake revised materials available to you shortly if it has not already provided such materials
Should you have any questions about compliance with this notification please contact [insert NetSpend contact person] Further information about the order can be obtained by visiting wwwftcgov and searching for ldquoNetSpendrdquo
Sincerely
[Name][Title]NetSpend Corporation
Case 116-cv-04203-AT Document 41 Filed 033117 Page 28 of 32
Appendix A-2
[ON NETSPEND CORPORATION LETTERHEAD]
IMPORTANT NOTICE TO UPDATE NETSPEND CARD MATERIALS TO COMPLY WITH FEDERAL COURT ORDER
[insert addressee name][insert addressee address]
Dear [Third Party]
In response to a settlement with the Federal Trade Commission NetSpend Corporation (NetSpend) has agreed to a court order prohibiting the use of certain claims in marketing and other materials In accordance with this order NetSpend [as applicable ndash as successor-in-interest to Skylight Financial Inc] directs that you affix corrective stickers to any existing NetSpend materials that state NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval
Enclosed with this letter are corrective stickers stating ldquoYou must meet identity verification requirements to activate and use the cardrdquo These stickers must be placed on the NetSpend materials in close proximity to such statements that NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval If the foregoingstatements are contained within an envelope or package that is already sealed then the sticker shall be placed in a prominent position on the outside of the envelope or package Attached also are copies photographs or images of sample materials illustrating the required correction
Should you have any questions about compliance with this notification please contact [insert NetSpend contact person] Further information about the order can be obtained by visiting wwwftcgov and searching for ldquoNetSpendrdquo
Sincerely
[Name][Title]NetSpend Corporation
Case 116-cv-04203-AT Document 41 Filed 033117 Page 29 of 32
Appendix B
Subject line of e-mail NetSpend [or such other NetSpend brand eg PayPal] Card Refunds Available
You may be eligible for a refund related to your [Branded Name (as applicable)] prepaid card [managed by NetSpend (as necessary where a branded name is used)] Under a settlement with the Federal Trade Commission NetSpend will refund certain customers
If you wish to receive your money via check complete this personalized request form [REQUEST FORM (Link to Personalized Survey per customer) Samplehttpswwwnetspendcomaccountcs surveymid= 1052492523ampsid=601] by ltDate of End of Redress Periodgt
After ltDate of End of Redress Periodgt you will need to contact both the FTC and NetSpend to receive your funds
NetSpend will mail checks within 30 days of receiving a valid request form
If instead of getting a check by filling out the form linked above you would like us to send your refund to an existing NetSpend card please contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 You may be required to submit identification documents to NetSpend to activate your card and access your money
For more information about the program visit wwwftcgovNetSpend If youhave any problems receiving your funds please let the FTC know by emailing NetSpendftcgov
Online Check Request Form
Under the terms of NetSpendrsquos settlement with the Federal Trade Commission [link to wwwftcgovNetSpend] NetSpend will refund certain customers who loaded money on cards
How you would like to receive your money
Case 116-cv-04203-AT Document 41 Filed 033117 Page 30 of 32
_____ Close my account and mail a check to the address on my account
_____ Close my account and mail a check to another address (please enter your new address below)
_____I would like to contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 to receive my funds via a NetSpend card I understand that with this option I may be required to submit identification documents to NetSpend to activate my card and access my money
New Address Street
City
State
Zip
Phone
Finish
Case 116-cv-04203-AT Document 41 Filed 033117 Page 31 of 32
Subject line of mailed letter NetSpend [or applicable NetSpend brand eg PayPal] Card Refunds Available
You may be eligible for a refund related to your [Brand Name (as applicable)] prepaid card [managed by NetSpend (as necessary where a branded name is used)] Under a settlement with the Federal Trade Commission NetSpend willrefund certain customers
If you wish to receive your money via check complete the personalized formbelow by ltDate of End of Redress Periodgt and return it to NetSpend in the enclosed envelope If you received a refund notice from NetSpend by email you may instead go to the personalized request form linked in the email to request your refund
After ltDate of End of Redress Periodgt you will need to contact both the FTC and NetSpend to receive your funds
NetSpend will mail checks within 30 days of receiving a valid request form
For more information about the program visit wwwftcgovNetSpend If youhave any problems receiving your funds please let the FTC know by emailing NetSpendftcgov
Reference Number _________ Name ltFirst Namegt ltLast Namegt Account Address ltStreetgt ltCitygt ltStategt ltZipgt
Check Request
_____ Close my account and mail a check to the address on my account
_____ Close my account and mail a check to another address (please enter your new address below)
Street
City
Case 116-cv-04203-AT Document 41 Filed 033117 Page 32 of 32
State
Zip
Phone
_____I would like to contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 to receive my funds via a NetSpend card I understand that with this option I may be required to submit identification documents to NetSpend to activate my card and access my money
Enclosure Envelope addressed to NetSpend with postage prepaid
COMPLIANCE REPORTING
IT IS FURTHER ORDERED that Defendant make timely
submissions to the Commission
A One year after entry of this Order Defendant must submit a
compliance report sworn under penalty of perjury Defendant must
1 identify the primary physical postal and email address
and telephone number as designated points of contact which
representatives of the Commission may use to communicate with Defendant
2 identify all of Defendants businesses by all of their
names telephone numbers and physical postal email and Internet
addresses
3 describe the activities of each business including the
goods and services offered and the means of advertising marketing and
sales
4 describe in detail whether and how Defendant is in
compliance with each Section of this Order and
5 provide a copy of each Order Acknowledgment obtained
pursuant to this Order unless previously submitted to the Commission
B For 20 years after entry of this Order Defendant must submit a
compliance notice sworn under penalty of perjury within 14 days of any
Page 19 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 19 of 32
in the following
1 any designated point of contact or
2 the structure of Defendant or any entity that Defendant
has any ownership interest in or controls directly or indirectly that may
affect compliance obligations arising under this Order including creation
merger sale or dissolution of the entity or any subsidiary parent or
affiliate that engages in any acts or practices subject to this Order
C Defendant must submit to the Commission notice of the filing
of any bankruptcy petition insolvency proceeding or similar proceeding by
or against Defendant within 14 days of its filing
D Any submission to the Commission required by this Order to be
sworn under penalty of perjury must be true and accurate and comply with
28 USC sect 1746 such as by concluding I declare under penalty of perjury
under the laws of the United States of America that the foregoing is true
and correct Executed on [date] and supplying the date signatorys full
name title (if applicable) and signature
E Unless otherwise directed by a Commission representative in
writing all submissions to the Commission pursuant to this Order must be
emailed to DEbriefftcgov or sent by overnight courier (not the US Postal
Service) to Associate Director for Enforcement Bureau of Consumer
Page 20 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 20 of 32
Federal Trade Commission 600 Pennsylvania Avenue NW
Washington DC 20580 The subject line must begin FTC v NetSpend
Corporation Xl 70006
VII RECORDKEEPING
IT IS FURTHER ORDERED that Defendant must create certain
records for 20 years after entry of the Order and retain each such record for
5 years Specifically Defendant must create and retain the following
records in connection with the advertisement marketing promotion
offering for sale sale management or servicing of any Prepaid Product
A accounting records showing the revenues from all such goods
or services sold
B personnel records of Defendant showing for each individual
providing services whether as an employee or otherwise that persons
name addresses telephone numbers job title or position dates of service
and (if applicable) the reason for termination
C records of all consumer complaints whether received directly
or indirectly related to access to funds which shall include but not be
limited to available consumer contact information date of complaint
source of complaint category of complaint and the outcome provided that
this Subparagraph shall apply only to consumer complaints related to
Page 21of26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 21 of 32
to funds received directly or indirectly from a consumer a federal or
state agency the Better Business Bureau State Attorneys General as
well as any consumer lawsuit
D all records necessary to demonstrate full compliance with each
provision of this Order including all submissions to the Commission
E a copy of each unique advertisement or other marketing
material created produced or approved by Defendant and
F records of blocks that restrict consumer access to Prepaid
Products requests by consumers to activate and register Prepaid
Products when submitted directly to Defendant or when records of such
requests are available to Defendant requests by consumers to lift blocks
on Prepaid Products requests by consumers for closure of Prepaid Product
accounts and any subsequent disbursements of funds to consumers
consumer notifications of account errors and disbursements of provisional
credits Provided however that to the extent Defendant does not
maintain records as provided in this Subsection in the ordinary course of
business as of the date of this Order and must implement new record
keeping policies systems or procedures to create them Defendant shall
implement such policies systems or procedures within 90 days after the
date of this Order Provided further that Defendant shall not be required
Page 22 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 22 of 32
create or maintain any record identified in this Subsection if Defendant
demonstrates that it is prohibited by banking law or regulation from
creating or maintaining such record
VIII COMPLIANCE MONITORING
IT IS FURTHER ORDERED that for the purpose of monitoring
Defendants compliance with this Order and any failure to transfer any
assets as required by this Order
A Within 14 days of receipt of a written request from a
representative of the Commission Defendant must submit additional
compliance reports or other requested information which must be sworn
under penalty of perjury and appear for depositions and produce
documents for inspection and copying The Commission is also authorized
to obtain discovery without further leave of court using any of the
procedures prescribed by Federal Rules of Civil Procedure 29 30 (including
telephonic depositions) 31 33 34 36 45 and 69
B For matters concerning this Order the Commission is
authorized to communicate directly with Defendant Defendant must
permit representatives of the Commission to interview any employee or
Page 23 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 23 of 32
person affiliated with Defendant who has agreed to such an
interview The person interviewed may have counsel present
C The Commission may use all other lawful means including
posing through its representatives as consumers suppliers or other
individuals or entities to Defendant or any individual or entity affiliated
with Defendant without the necessity of identification or prior notice
Nothing in this Order limits the Commissions lawful use of compulsory
process pursuant to Sections 9 and 20 of the FTC Act 15 USC sectsect 49
57b-l
IX RETENTION OF JURISDICTION
IT IS FURTHER ORDERED that this Court retains jurisdiction of this
matter for purposes of construction modification and enforcement of this
Order
SO ORDERED this ___ day of ____________ _ 2017
Amy Totenberg UNITED STATES DISTRICT JUDGE
Page 24 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 24 of 32
STIPULATED AND AGREED FOR
PLAINTIFF
FEDERAL TRADE COJM11ISSION
Dated jQH~ S ( 2-6 - - -=--=---------------- ------
7
Mark By fe~~
Glassman Adam M Wesolowski Federal Trade Commission 600 Pennsylvania Avenue NW Mailstop CC-10232 Washington DC 20580 Email mglassmanftcgov awesolowskiftcgov Phone (202) 326-2826 (Glassman) (202) 326-3068 (Wesolowski) Fax (202) 326-3768
By 12rdf-d-cgtltd ~ Robin L Rock (Bar No 629532) Federal Trade Commission 225 Peachtree Street NE Suite 1500 Atlanta GA 30303 Email rrockftcgov Phone (404) 656-1368 Fax (404) 656-1379
Attorneys for Plaintiff FEDERAL TRADE COMMISSION
Page 25 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 25 of 32
DE~gSPEND CORPORATION
Diane By~
McCartnev fv~~
- d Vice President Compliance NETSPEND CORPORATION
MORRISON amp FOERSTER LLP
Steven JVI Kaufmann Natalie Fleming ~olen 2000 Pennsylvania Avenue Vv ashington DC 20006 Telephone (212) 468middot8000 Ekfl 11fm ann~mofocom nilemi]1g_g_ol~n(~mofoco1y~
Sarah N Davis 425 Market Street San Francisco California 94105-2482 Telephone (415) 268-7000 Sarah Do yi s(ahn ofo com
By---~-=-~+----=-1i__~___ Michael B Terry Georgia Bar No 702582 BONDURANl MIXSON amp ELMORE LLP 1201 West Peachtree Street NV Suite 3900 Atlanta GA 30309 Email er1middotvbm elaw99nl (404) 881 middot4100
Attorneys for Defendant NetSpend Corporation
Page 26 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 26 of 32
Case 116-cv-04203-AT Document 41 Filed 033117 Page 27 of 32
Appendix A-1
[ON NETSPEND CORPORATION LETTERHEAD]
IMPORTANT NOTICE TO REMOVE NETSPEND CARD MATERIALS TO COMPLY WITH FEDERAL COURT ORDER
[insert addressee name][insert addressee address]
Dear [Third Party]
In response to a settlement with the Federal Trade Commission NetSpend Corporation (NetSpend) has agreed to a court order prohibiting the use of certain claims in marketing and other materials In accordance with this order NetSpend directs that within sixty (60) days of the date of this letter you stop using any existing NetSpend materials that state that NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval Attached hereto are copies photographs or images of sample materials subject to removal NetSpend willmake revised materials available to you shortly if it has not already provided such materials
Should you have any questions about compliance with this notification please contact [insert NetSpend contact person] Further information about the order can be obtained by visiting wwwftcgov and searching for ldquoNetSpendrdquo
Sincerely
[Name][Title]NetSpend Corporation
Case 116-cv-04203-AT Document 41 Filed 033117 Page 28 of 32
Appendix A-2
[ON NETSPEND CORPORATION LETTERHEAD]
IMPORTANT NOTICE TO UPDATE NETSPEND CARD MATERIALS TO COMPLY WITH FEDERAL COURT ORDER
[insert addressee name][insert addressee address]
Dear [Third Party]
In response to a settlement with the Federal Trade Commission NetSpend Corporation (NetSpend) has agreed to a court order prohibiting the use of certain claims in marketing and other materials In accordance with this order NetSpend [as applicable ndash as successor-in-interest to Skylight Financial Inc] directs that you affix corrective stickers to any existing NetSpend materials that state NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval
Enclosed with this letter are corrective stickers stating ldquoYou must meet identity verification requirements to activate and use the cardrdquo These stickers must be placed on the NetSpend materials in close proximity to such statements that NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval If the foregoingstatements are contained within an envelope or package that is already sealed then the sticker shall be placed in a prominent position on the outside of the envelope or package Attached also are copies photographs or images of sample materials illustrating the required correction
Should you have any questions about compliance with this notification please contact [insert NetSpend contact person] Further information about the order can be obtained by visiting wwwftcgov and searching for ldquoNetSpendrdquo
Sincerely
[Name][Title]NetSpend Corporation
Case 116-cv-04203-AT Document 41 Filed 033117 Page 29 of 32
Appendix B
Subject line of e-mail NetSpend [or such other NetSpend brand eg PayPal] Card Refunds Available
You may be eligible for a refund related to your [Branded Name (as applicable)] prepaid card [managed by NetSpend (as necessary where a branded name is used)] Under a settlement with the Federal Trade Commission NetSpend will refund certain customers
If you wish to receive your money via check complete this personalized request form [REQUEST FORM (Link to Personalized Survey per customer) Samplehttpswwwnetspendcomaccountcs surveymid= 1052492523ampsid=601] by ltDate of End of Redress Periodgt
After ltDate of End of Redress Periodgt you will need to contact both the FTC and NetSpend to receive your funds
NetSpend will mail checks within 30 days of receiving a valid request form
If instead of getting a check by filling out the form linked above you would like us to send your refund to an existing NetSpend card please contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 You may be required to submit identification documents to NetSpend to activate your card and access your money
For more information about the program visit wwwftcgovNetSpend If youhave any problems receiving your funds please let the FTC know by emailing NetSpendftcgov
Online Check Request Form
Under the terms of NetSpendrsquos settlement with the Federal Trade Commission [link to wwwftcgovNetSpend] NetSpend will refund certain customers who loaded money on cards
How you would like to receive your money
Case 116-cv-04203-AT Document 41 Filed 033117 Page 30 of 32
_____ Close my account and mail a check to the address on my account
_____ Close my account and mail a check to another address (please enter your new address below)
_____I would like to contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 to receive my funds via a NetSpend card I understand that with this option I may be required to submit identification documents to NetSpend to activate my card and access my money
New Address Street
City
State
Zip
Phone
Finish
Case 116-cv-04203-AT Document 41 Filed 033117 Page 31 of 32
Subject line of mailed letter NetSpend [or applicable NetSpend brand eg PayPal] Card Refunds Available
You may be eligible for a refund related to your [Brand Name (as applicable)] prepaid card [managed by NetSpend (as necessary where a branded name is used)] Under a settlement with the Federal Trade Commission NetSpend willrefund certain customers
If you wish to receive your money via check complete the personalized formbelow by ltDate of End of Redress Periodgt and return it to NetSpend in the enclosed envelope If you received a refund notice from NetSpend by email you may instead go to the personalized request form linked in the email to request your refund
After ltDate of End of Redress Periodgt you will need to contact both the FTC and NetSpend to receive your funds
NetSpend will mail checks within 30 days of receiving a valid request form
For more information about the program visit wwwftcgovNetSpend If youhave any problems receiving your funds please let the FTC know by emailing NetSpendftcgov
Reference Number _________ Name ltFirst Namegt ltLast Namegt Account Address ltStreetgt ltCitygt ltStategt ltZipgt
Check Request
_____ Close my account and mail a check to the address on my account
_____ Close my account and mail a check to another address (please enter your new address below)
Street
City
Case 116-cv-04203-AT Document 41 Filed 033117 Page 32 of 32
State
Zip
Phone
_____I would like to contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 to receive my funds via a NetSpend card I understand that with this option I may be required to submit identification documents to NetSpend to activate my card and access my money
Enclosure Envelope addressed to NetSpend with postage prepaid
in the following
1 any designated point of contact or
2 the structure of Defendant or any entity that Defendant
has any ownership interest in or controls directly or indirectly that may
affect compliance obligations arising under this Order including creation
merger sale or dissolution of the entity or any subsidiary parent or
affiliate that engages in any acts or practices subject to this Order
C Defendant must submit to the Commission notice of the filing
of any bankruptcy petition insolvency proceeding or similar proceeding by
or against Defendant within 14 days of its filing
D Any submission to the Commission required by this Order to be
sworn under penalty of perjury must be true and accurate and comply with
28 USC sect 1746 such as by concluding I declare under penalty of perjury
under the laws of the United States of America that the foregoing is true
and correct Executed on [date] and supplying the date signatorys full
name title (if applicable) and signature
E Unless otherwise directed by a Commission representative in
writing all submissions to the Commission pursuant to this Order must be
emailed to DEbriefftcgov or sent by overnight courier (not the US Postal
Service) to Associate Director for Enforcement Bureau of Consumer
Page 20 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 20 of 32
Federal Trade Commission 600 Pennsylvania Avenue NW
Washington DC 20580 The subject line must begin FTC v NetSpend
Corporation Xl 70006
VII RECORDKEEPING
IT IS FURTHER ORDERED that Defendant must create certain
records for 20 years after entry of the Order and retain each such record for
5 years Specifically Defendant must create and retain the following
records in connection with the advertisement marketing promotion
offering for sale sale management or servicing of any Prepaid Product
A accounting records showing the revenues from all such goods
or services sold
B personnel records of Defendant showing for each individual
providing services whether as an employee or otherwise that persons
name addresses telephone numbers job title or position dates of service
and (if applicable) the reason for termination
C records of all consumer complaints whether received directly
or indirectly related to access to funds which shall include but not be
limited to available consumer contact information date of complaint
source of complaint category of complaint and the outcome provided that
this Subparagraph shall apply only to consumer complaints related to
Page 21of26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 21 of 32
to funds received directly or indirectly from a consumer a federal or
state agency the Better Business Bureau State Attorneys General as
well as any consumer lawsuit
D all records necessary to demonstrate full compliance with each
provision of this Order including all submissions to the Commission
E a copy of each unique advertisement or other marketing
material created produced or approved by Defendant and
F records of blocks that restrict consumer access to Prepaid
Products requests by consumers to activate and register Prepaid
Products when submitted directly to Defendant or when records of such
requests are available to Defendant requests by consumers to lift blocks
on Prepaid Products requests by consumers for closure of Prepaid Product
accounts and any subsequent disbursements of funds to consumers
consumer notifications of account errors and disbursements of provisional
credits Provided however that to the extent Defendant does not
maintain records as provided in this Subsection in the ordinary course of
business as of the date of this Order and must implement new record
keeping policies systems or procedures to create them Defendant shall
implement such policies systems or procedures within 90 days after the
date of this Order Provided further that Defendant shall not be required
Page 22 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 22 of 32
create or maintain any record identified in this Subsection if Defendant
demonstrates that it is prohibited by banking law or regulation from
creating or maintaining such record
VIII COMPLIANCE MONITORING
IT IS FURTHER ORDERED that for the purpose of monitoring
Defendants compliance with this Order and any failure to transfer any
assets as required by this Order
A Within 14 days of receipt of a written request from a
representative of the Commission Defendant must submit additional
compliance reports or other requested information which must be sworn
under penalty of perjury and appear for depositions and produce
documents for inspection and copying The Commission is also authorized
to obtain discovery without further leave of court using any of the
procedures prescribed by Federal Rules of Civil Procedure 29 30 (including
telephonic depositions) 31 33 34 36 45 and 69
B For matters concerning this Order the Commission is
authorized to communicate directly with Defendant Defendant must
permit representatives of the Commission to interview any employee or
Page 23 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 23 of 32
person affiliated with Defendant who has agreed to such an
interview The person interviewed may have counsel present
C The Commission may use all other lawful means including
posing through its representatives as consumers suppliers or other
individuals or entities to Defendant or any individual or entity affiliated
with Defendant without the necessity of identification or prior notice
Nothing in this Order limits the Commissions lawful use of compulsory
process pursuant to Sections 9 and 20 of the FTC Act 15 USC sectsect 49
57b-l
IX RETENTION OF JURISDICTION
IT IS FURTHER ORDERED that this Court retains jurisdiction of this
matter for purposes of construction modification and enforcement of this
Order
SO ORDERED this ___ day of ____________ _ 2017
Amy Totenberg UNITED STATES DISTRICT JUDGE
Page 24 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 24 of 32
STIPULATED AND AGREED FOR
PLAINTIFF
FEDERAL TRADE COJM11ISSION
Dated jQH~ S ( 2-6 - - -=--=---------------- ------
7
Mark By fe~~
Glassman Adam M Wesolowski Federal Trade Commission 600 Pennsylvania Avenue NW Mailstop CC-10232 Washington DC 20580 Email mglassmanftcgov awesolowskiftcgov Phone (202) 326-2826 (Glassman) (202) 326-3068 (Wesolowski) Fax (202) 326-3768
By 12rdf-d-cgtltd ~ Robin L Rock (Bar No 629532) Federal Trade Commission 225 Peachtree Street NE Suite 1500 Atlanta GA 30303 Email rrockftcgov Phone (404) 656-1368 Fax (404) 656-1379
Attorneys for Plaintiff FEDERAL TRADE COMMISSION
Page 25 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 25 of 32
DE~gSPEND CORPORATION
Diane By~
McCartnev fv~~
- d Vice President Compliance NETSPEND CORPORATION
MORRISON amp FOERSTER LLP
Steven JVI Kaufmann Natalie Fleming ~olen 2000 Pennsylvania Avenue Vv ashington DC 20006 Telephone (212) 468middot8000 Ekfl 11fm ann~mofocom nilemi]1g_g_ol~n(~mofoco1y~
Sarah N Davis 425 Market Street San Francisco California 94105-2482 Telephone (415) 268-7000 Sarah Do yi s(ahn ofo com
By---~-=-~+----=-1i__~___ Michael B Terry Georgia Bar No 702582 BONDURANl MIXSON amp ELMORE LLP 1201 West Peachtree Street NV Suite 3900 Atlanta GA 30309 Email er1middotvbm elaw99nl (404) 881 middot4100
Attorneys for Defendant NetSpend Corporation
Page 26 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 26 of 32
Case 116-cv-04203-AT Document 41 Filed 033117 Page 27 of 32
Appendix A-1
[ON NETSPEND CORPORATION LETTERHEAD]
IMPORTANT NOTICE TO REMOVE NETSPEND CARD MATERIALS TO COMPLY WITH FEDERAL COURT ORDER
[insert addressee name][insert addressee address]
Dear [Third Party]
In response to a settlement with the Federal Trade Commission NetSpend Corporation (NetSpend) has agreed to a court order prohibiting the use of certain claims in marketing and other materials In accordance with this order NetSpend directs that within sixty (60) days of the date of this letter you stop using any existing NetSpend materials that state that NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval Attached hereto are copies photographs or images of sample materials subject to removal NetSpend willmake revised materials available to you shortly if it has not already provided such materials
Should you have any questions about compliance with this notification please contact [insert NetSpend contact person] Further information about the order can be obtained by visiting wwwftcgov and searching for ldquoNetSpendrdquo
Sincerely
[Name][Title]NetSpend Corporation
Case 116-cv-04203-AT Document 41 Filed 033117 Page 28 of 32
Appendix A-2
[ON NETSPEND CORPORATION LETTERHEAD]
IMPORTANT NOTICE TO UPDATE NETSPEND CARD MATERIALS TO COMPLY WITH FEDERAL COURT ORDER
[insert addressee name][insert addressee address]
Dear [Third Party]
In response to a settlement with the Federal Trade Commission NetSpend Corporation (NetSpend) has agreed to a court order prohibiting the use of certain claims in marketing and other materials In accordance with this order NetSpend [as applicable ndash as successor-in-interest to Skylight Financial Inc] directs that you affix corrective stickers to any existing NetSpend materials that state NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval
Enclosed with this letter are corrective stickers stating ldquoYou must meet identity verification requirements to activate and use the cardrdquo These stickers must be placed on the NetSpend materials in close proximity to such statements that NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval If the foregoingstatements are contained within an envelope or package that is already sealed then the sticker shall be placed in a prominent position on the outside of the envelope or package Attached also are copies photographs or images of sample materials illustrating the required correction
Should you have any questions about compliance with this notification please contact [insert NetSpend contact person] Further information about the order can be obtained by visiting wwwftcgov and searching for ldquoNetSpendrdquo
Sincerely
[Name][Title]NetSpend Corporation
Case 116-cv-04203-AT Document 41 Filed 033117 Page 29 of 32
Appendix B
Subject line of e-mail NetSpend [or such other NetSpend brand eg PayPal] Card Refunds Available
You may be eligible for a refund related to your [Branded Name (as applicable)] prepaid card [managed by NetSpend (as necessary where a branded name is used)] Under a settlement with the Federal Trade Commission NetSpend will refund certain customers
If you wish to receive your money via check complete this personalized request form [REQUEST FORM (Link to Personalized Survey per customer) Samplehttpswwwnetspendcomaccountcs surveymid= 1052492523ampsid=601] by ltDate of End of Redress Periodgt
After ltDate of End of Redress Periodgt you will need to contact both the FTC and NetSpend to receive your funds
NetSpend will mail checks within 30 days of receiving a valid request form
If instead of getting a check by filling out the form linked above you would like us to send your refund to an existing NetSpend card please contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 You may be required to submit identification documents to NetSpend to activate your card and access your money
For more information about the program visit wwwftcgovNetSpend If youhave any problems receiving your funds please let the FTC know by emailing NetSpendftcgov
Online Check Request Form
Under the terms of NetSpendrsquos settlement with the Federal Trade Commission [link to wwwftcgovNetSpend] NetSpend will refund certain customers who loaded money on cards
How you would like to receive your money
Case 116-cv-04203-AT Document 41 Filed 033117 Page 30 of 32
_____ Close my account and mail a check to the address on my account
_____ Close my account and mail a check to another address (please enter your new address below)
_____I would like to contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 to receive my funds via a NetSpend card I understand that with this option I may be required to submit identification documents to NetSpend to activate my card and access my money
New Address Street
City
State
Zip
Phone
Finish
Case 116-cv-04203-AT Document 41 Filed 033117 Page 31 of 32
Subject line of mailed letter NetSpend [or applicable NetSpend brand eg PayPal] Card Refunds Available
You may be eligible for a refund related to your [Brand Name (as applicable)] prepaid card [managed by NetSpend (as necessary where a branded name is used)] Under a settlement with the Federal Trade Commission NetSpend willrefund certain customers
If you wish to receive your money via check complete the personalized formbelow by ltDate of End of Redress Periodgt and return it to NetSpend in the enclosed envelope If you received a refund notice from NetSpend by email you may instead go to the personalized request form linked in the email to request your refund
After ltDate of End of Redress Periodgt you will need to contact both the FTC and NetSpend to receive your funds
NetSpend will mail checks within 30 days of receiving a valid request form
For more information about the program visit wwwftcgovNetSpend If youhave any problems receiving your funds please let the FTC know by emailing NetSpendftcgov
Reference Number _________ Name ltFirst Namegt ltLast Namegt Account Address ltStreetgt ltCitygt ltStategt ltZipgt
Check Request
_____ Close my account and mail a check to the address on my account
_____ Close my account and mail a check to another address (please enter your new address below)
Street
City
Case 116-cv-04203-AT Document 41 Filed 033117 Page 32 of 32
State
Zip
Phone
_____I would like to contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 to receive my funds via a NetSpend card I understand that with this option I may be required to submit identification documents to NetSpend to activate my card and access my money
Enclosure Envelope addressed to NetSpend with postage prepaid
Federal Trade Commission 600 Pennsylvania Avenue NW
Washington DC 20580 The subject line must begin FTC v NetSpend
Corporation Xl 70006
VII RECORDKEEPING
IT IS FURTHER ORDERED that Defendant must create certain
records for 20 years after entry of the Order and retain each such record for
5 years Specifically Defendant must create and retain the following
records in connection with the advertisement marketing promotion
offering for sale sale management or servicing of any Prepaid Product
A accounting records showing the revenues from all such goods
or services sold
B personnel records of Defendant showing for each individual
providing services whether as an employee or otherwise that persons
name addresses telephone numbers job title or position dates of service
and (if applicable) the reason for termination
C records of all consumer complaints whether received directly
or indirectly related to access to funds which shall include but not be
limited to available consumer contact information date of complaint
source of complaint category of complaint and the outcome provided that
this Subparagraph shall apply only to consumer complaints related to
Page 21of26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 21 of 32
to funds received directly or indirectly from a consumer a federal or
state agency the Better Business Bureau State Attorneys General as
well as any consumer lawsuit
D all records necessary to demonstrate full compliance with each
provision of this Order including all submissions to the Commission
E a copy of each unique advertisement or other marketing
material created produced or approved by Defendant and
F records of blocks that restrict consumer access to Prepaid
Products requests by consumers to activate and register Prepaid
Products when submitted directly to Defendant or when records of such
requests are available to Defendant requests by consumers to lift blocks
on Prepaid Products requests by consumers for closure of Prepaid Product
accounts and any subsequent disbursements of funds to consumers
consumer notifications of account errors and disbursements of provisional
credits Provided however that to the extent Defendant does not
maintain records as provided in this Subsection in the ordinary course of
business as of the date of this Order and must implement new record
keeping policies systems or procedures to create them Defendant shall
implement such policies systems or procedures within 90 days after the
date of this Order Provided further that Defendant shall not be required
Page 22 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 22 of 32
create or maintain any record identified in this Subsection if Defendant
demonstrates that it is prohibited by banking law or regulation from
creating or maintaining such record
VIII COMPLIANCE MONITORING
IT IS FURTHER ORDERED that for the purpose of monitoring
Defendants compliance with this Order and any failure to transfer any
assets as required by this Order
A Within 14 days of receipt of a written request from a
representative of the Commission Defendant must submit additional
compliance reports or other requested information which must be sworn
under penalty of perjury and appear for depositions and produce
documents for inspection and copying The Commission is also authorized
to obtain discovery without further leave of court using any of the
procedures prescribed by Federal Rules of Civil Procedure 29 30 (including
telephonic depositions) 31 33 34 36 45 and 69
B For matters concerning this Order the Commission is
authorized to communicate directly with Defendant Defendant must
permit representatives of the Commission to interview any employee or
Page 23 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 23 of 32
person affiliated with Defendant who has agreed to such an
interview The person interviewed may have counsel present
C The Commission may use all other lawful means including
posing through its representatives as consumers suppliers or other
individuals or entities to Defendant or any individual or entity affiliated
with Defendant without the necessity of identification or prior notice
Nothing in this Order limits the Commissions lawful use of compulsory
process pursuant to Sections 9 and 20 of the FTC Act 15 USC sectsect 49
57b-l
IX RETENTION OF JURISDICTION
IT IS FURTHER ORDERED that this Court retains jurisdiction of this
matter for purposes of construction modification and enforcement of this
Order
SO ORDERED this ___ day of ____________ _ 2017
Amy Totenberg UNITED STATES DISTRICT JUDGE
Page 24 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 24 of 32
STIPULATED AND AGREED FOR
PLAINTIFF
FEDERAL TRADE COJM11ISSION
Dated jQH~ S ( 2-6 - - -=--=---------------- ------
7
Mark By fe~~
Glassman Adam M Wesolowski Federal Trade Commission 600 Pennsylvania Avenue NW Mailstop CC-10232 Washington DC 20580 Email mglassmanftcgov awesolowskiftcgov Phone (202) 326-2826 (Glassman) (202) 326-3068 (Wesolowski) Fax (202) 326-3768
By 12rdf-d-cgtltd ~ Robin L Rock (Bar No 629532) Federal Trade Commission 225 Peachtree Street NE Suite 1500 Atlanta GA 30303 Email rrockftcgov Phone (404) 656-1368 Fax (404) 656-1379
Attorneys for Plaintiff FEDERAL TRADE COMMISSION
Page 25 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 25 of 32
DE~gSPEND CORPORATION
Diane By~
McCartnev fv~~
- d Vice President Compliance NETSPEND CORPORATION
MORRISON amp FOERSTER LLP
Steven JVI Kaufmann Natalie Fleming ~olen 2000 Pennsylvania Avenue Vv ashington DC 20006 Telephone (212) 468middot8000 Ekfl 11fm ann~mofocom nilemi]1g_g_ol~n(~mofoco1y~
Sarah N Davis 425 Market Street San Francisco California 94105-2482 Telephone (415) 268-7000 Sarah Do yi s(ahn ofo com
By---~-=-~+----=-1i__~___ Michael B Terry Georgia Bar No 702582 BONDURANl MIXSON amp ELMORE LLP 1201 West Peachtree Street NV Suite 3900 Atlanta GA 30309 Email er1middotvbm elaw99nl (404) 881 middot4100
Attorneys for Defendant NetSpend Corporation
Page 26 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 26 of 32
Case 116-cv-04203-AT Document 41 Filed 033117 Page 27 of 32
Appendix A-1
[ON NETSPEND CORPORATION LETTERHEAD]
IMPORTANT NOTICE TO REMOVE NETSPEND CARD MATERIALS TO COMPLY WITH FEDERAL COURT ORDER
[insert addressee name][insert addressee address]
Dear [Third Party]
In response to a settlement with the Federal Trade Commission NetSpend Corporation (NetSpend) has agreed to a court order prohibiting the use of certain claims in marketing and other materials In accordance with this order NetSpend directs that within sixty (60) days of the date of this letter you stop using any existing NetSpend materials that state that NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval Attached hereto are copies photographs or images of sample materials subject to removal NetSpend willmake revised materials available to you shortly if it has not already provided such materials
Should you have any questions about compliance with this notification please contact [insert NetSpend contact person] Further information about the order can be obtained by visiting wwwftcgov and searching for ldquoNetSpendrdquo
Sincerely
[Name][Title]NetSpend Corporation
Case 116-cv-04203-AT Document 41 Filed 033117 Page 28 of 32
Appendix A-2
[ON NETSPEND CORPORATION LETTERHEAD]
IMPORTANT NOTICE TO UPDATE NETSPEND CARD MATERIALS TO COMPLY WITH FEDERAL COURT ORDER
[insert addressee name][insert addressee address]
Dear [Third Party]
In response to a settlement with the Federal Trade Commission NetSpend Corporation (NetSpend) has agreed to a court order prohibiting the use of certain claims in marketing and other materials In accordance with this order NetSpend [as applicable ndash as successor-in-interest to Skylight Financial Inc] directs that you affix corrective stickers to any existing NetSpend materials that state NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval
Enclosed with this letter are corrective stickers stating ldquoYou must meet identity verification requirements to activate and use the cardrdquo These stickers must be placed on the NetSpend materials in close proximity to such statements that NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval If the foregoingstatements are contained within an envelope or package that is already sealed then the sticker shall be placed in a prominent position on the outside of the envelope or package Attached also are copies photographs or images of sample materials illustrating the required correction
Should you have any questions about compliance with this notification please contact [insert NetSpend contact person] Further information about the order can be obtained by visiting wwwftcgov and searching for ldquoNetSpendrdquo
Sincerely
[Name][Title]NetSpend Corporation
Case 116-cv-04203-AT Document 41 Filed 033117 Page 29 of 32
Appendix B
Subject line of e-mail NetSpend [or such other NetSpend brand eg PayPal] Card Refunds Available
You may be eligible for a refund related to your [Branded Name (as applicable)] prepaid card [managed by NetSpend (as necessary where a branded name is used)] Under a settlement with the Federal Trade Commission NetSpend will refund certain customers
If you wish to receive your money via check complete this personalized request form [REQUEST FORM (Link to Personalized Survey per customer) Samplehttpswwwnetspendcomaccountcs surveymid= 1052492523ampsid=601] by ltDate of End of Redress Periodgt
After ltDate of End of Redress Periodgt you will need to contact both the FTC and NetSpend to receive your funds
NetSpend will mail checks within 30 days of receiving a valid request form
If instead of getting a check by filling out the form linked above you would like us to send your refund to an existing NetSpend card please contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 You may be required to submit identification documents to NetSpend to activate your card and access your money
For more information about the program visit wwwftcgovNetSpend If youhave any problems receiving your funds please let the FTC know by emailing NetSpendftcgov
Online Check Request Form
Under the terms of NetSpendrsquos settlement with the Federal Trade Commission [link to wwwftcgovNetSpend] NetSpend will refund certain customers who loaded money on cards
How you would like to receive your money
Case 116-cv-04203-AT Document 41 Filed 033117 Page 30 of 32
_____ Close my account and mail a check to the address on my account
_____ Close my account and mail a check to another address (please enter your new address below)
_____I would like to contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 to receive my funds via a NetSpend card I understand that with this option I may be required to submit identification documents to NetSpend to activate my card and access my money
New Address Street
City
State
Zip
Phone
Finish
Case 116-cv-04203-AT Document 41 Filed 033117 Page 31 of 32
Subject line of mailed letter NetSpend [or applicable NetSpend brand eg PayPal] Card Refunds Available
You may be eligible for a refund related to your [Brand Name (as applicable)] prepaid card [managed by NetSpend (as necessary where a branded name is used)] Under a settlement with the Federal Trade Commission NetSpend willrefund certain customers
If you wish to receive your money via check complete the personalized formbelow by ltDate of End of Redress Periodgt and return it to NetSpend in the enclosed envelope If you received a refund notice from NetSpend by email you may instead go to the personalized request form linked in the email to request your refund
After ltDate of End of Redress Periodgt you will need to contact both the FTC and NetSpend to receive your funds
NetSpend will mail checks within 30 days of receiving a valid request form
For more information about the program visit wwwftcgovNetSpend If youhave any problems receiving your funds please let the FTC know by emailing NetSpendftcgov
Reference Number _________ Name ltFirst Namegt ltLast Namegt Account Address ltStreetgt ltCitygt ltStategt ltZipgt
Check Request
_____ Close my account and mail a check to the address on my account
_____ Close my account and mail a check to another address (please enter your new address below)
Street
City
Case 116-cv-04203-AT Document 41 Filed 033117 Page 32 of 32
State
Zip
Phone
_____I would like to contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 to receive my funds via a NetSpend card I understand that with this option I may be required to submit identification documents to NetSpend to activate my card and access my money
Enclosure Envelope addressed to NetSpend with postage prepaid
to funds received directly or indirectly from a consumer a federal or
state agency the Better Business Bureau State Attorneys General as
well as any consumer lawsuit
D all records necessary to demonstrate full compliance with each
provision of this Order including all submissions to the Commission
E a copy of each unique advertisement or other marketing
material created produced or approved by Defendant and
F records of blocks that restrict consumer access to Prepaid
Products requests by consumers to activate and register Prepaid
Products when submitted directly to Defendant or when records of such
requests are available to Defendant requests by consumers to lift blocks
on Prepaid Products requests by consumers for closure of Prepaid Product
accounts and any subsequent disbursements of funds to consumers
consumer notifications of account errors and disbursements of provisional
credits Provided however that to the extent Defendant does not
maintain records as provided in this Subsection in the ordinary course of
business as of the date of this Order and must implement new record
keeping policies systems or procedures to create them Defendant shall
implement such policies systems or procedures within 90 days after the
date of this Order Provided further that Defendant shall not be required
Page 22 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 22 of 32
create or maintain any record identified in this Subsection if Defendant
demonstrates that it is prohibited by banking law or regulation from
creating or maintaining such record
VIII COMPLIANCE MONITORING
IT IS FURTHER ORDERED that for the purpose of monitoring
Defendants compliance with this Order and any failure to transfer any
assets as required by this Order
A Within 14 days of receipt of a written request from a
representative of the Commission Defendant must submit additional
compliance reports or other requested information which must be sworn
under penalty of perjury and appear for depositions and produce
documents for inspection and copying The Commission is also authorized
to obtain discovery without further leave of court using any of the
procedures prescribed by Federal Rules of Civil Procedure 29 30 (including
telephonic depositions) 31 33 34 36 45 and 69
B For matters concerning this Order the Commission is
authorized to communicate directly with Defendant Defendant must
permit representatives of the Commission to interview any employee or
Page 23 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 23 of 32
person affiliated with Defendant who has agreed to such an
interview The person interviewed may have counsel present
C The Commission may use all other lawful means including
posing through its representatives as consumers suppliers or other
individuals or entities to Defendant or any individual or entity affiliated
with Defendant without the necessity of identification or prior notice
Nothing in this Order limits the Commissions lawful use of compulsory
process pursuant to Sections 9 and 20 of the FTC Act 15 USC sectsect 49
57b-l
IX RETENTION OF JURISDICTION
IT IS FURTHER ORDERED that this Court retains jurisdiction of this
matter for purposes of construction modification and enforcement of this
Order
SO ORDERED this ___ day of ____________ _ 2017
Amy Totenberg UNITED STATES DISTRICT JUDGE
Page 24 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 24 of 32
STIPULATED AND AGREED FOR
PLAINTIFF
FEDERAL TRADE COJM11ISSION
Dated jQH~ S ( 2-6 - - -=--=---------------- ------
7
Mark By fe~~
Glassman Adam M Wesolowski Federal Trade Commission 600 Pennsylvania Avenue NW Mailstop CC-10232 Washington DC 20580 Email mglassmanftcgov awesolowskiftcgov Phone (202) 326-2826 (Glassman) (202) 326-3068 (Wesolowski) Fax (202) 326-3768
By 12rdf-d-cgtltd ~ Robin L Rock (Bar No 629532) Federal Trade Commission 225 Peachtree Street NE Suite 1500 Atlanta GA 30303 Email rrockftcgov Phone (404) 656-1368 Fax (404) 656-1379
Attorneys for Plaintiff FEDERAL TRADE COMMISSION
Page 25 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 25 of 32
DE~gSPEND CORPORATION
Diane By~
McCartnev fv~~
- d Vice President Compliance NETSPEND CORPORATION
MORRISON amp FOERSTER LLP
Steven JVI Kaufmann Natalie Fleming ~olen 2000 Pennsylvania Avenue Vv ashington DC 20006 Telephone (212) 468middot8000 Ekfl 11fm ann~mofocom nilemi]1g_g_ol~n(~mofoco1y~
Sarah N Davis 425 Market Street San Francisco California 94105-2482 Telephone (415) 268-7000 Sarah Do yi s(ahn ofo com
By---~-=-~+----=-1i__~___ Michael B Terry Georgia Bar No 702582 BONDURANl MIXSON amp ELMORE LLP 1201 West Peachtree Street NV Suite 3900 Atlanta GA 30309 Email er1middotvbm elaw99nl (404) 881 middot4100
Attorneys for Defendant NetSpend Corporation
Page 26 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 26 of 32
Case 116-cv-04203-AT Document 41 Filed 033117 Page 27 of 32
Appendix A-1
[ON NETSPEND CORPORATION LETTERHEAD]
IMPORTANT NOTICE TO REMOVE NETSPEND CARD MATERIALS TO COMPLY WITH FEDERAL COURT ORDER
[insert addressee name][insert addressee address]
Dear [Third Party]
In response to a settlement with the Federal Trade Commission NetSpend Corporation (NetSpend) has agreed to a court order prohibiting the use of certain claims in marketing and other materials In accordance with this order NetSpend directs that within sixty (60) days of the date of this letter you stop using any existing NetSpend materials that state that NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval Attached hereto are copies photographs or images of sample materials subject to removal NetSpend willmake revised materials available to you shortly if it has not already provided such materials
Should you have any questions about compliance with this notification please contact [insert NetSpend contact person] Further information about the order can be obtained by visiting wwwftcgov and searching for ldquoNetSpendrdquo
Sincerely
[Name][Title]NetSpend Corporation
Case 116-cv-04203-AT Document 41 Filed 033117 Page 28 of 32
Appendix A-2
[ON NETSPEND CORPORATION LETTERHEAD]
IMPORTANT NOTICE TO UPDATE NETSPEND CARD MATERIALS TO COMPLY WITH FEDERAL COURT ORDER
[insert addressee name][insert addressee address]
Dear [Third Party]
In response to a settlement with the Federal Trade Commission NetSpend Corporation (NetSpend) has agreed to a court order prohibiting the use of certain claims in marketing and other materials In accordance with this order NetSpend [as applicable ndash as successor-in-interest to Skylight Financial Inc] directs that you affix corrective stickers to any existing NetSpend materials that state NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval
Enclosed with this letter are corrective stickers stating ldquoYou must meet identity verification requirements to activate and use the cardrdquo These stickers must be placed on the NetSpend materials in close proximity to such statements that NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval If the foregoingstatements are contained within an envelope or package that is already sealed then the sticker shall be placed in a prominent position on the outside of the envelope or package Attached also are copies photographs or images of sample materials illustrating the required correction
Should you have any questions about compliance with this notification please contact [insert NetSpend contact person] Further information about the order can be obtained by visiting wwwftcgov and searching for ldquoNetSpendrdquo
Sincerely
[Name][Title]NetSpend Corporation
Case 116-cv-04203-AT Document 41 Filed 033117 Page 29 of 32
Appendix B
Subject line of e-mail NetSpend [or such other NetSpend brand eg PayPal] Card Refunds Available
You may be eligible for a refund related to your [Branded Name (as applicable)] prepaid card [managed by NetSpend (as necessary where a branded name is used)] Under a settlement with the Federal Trade Commission NetSpend will refund certain customers
If you wish to receive your money via check complete this personalized request form [REQUEST FORM (Link to Personalized Survey per customer) Samplehttpswwwnetspendcomaccountcs surveymid= 1052492523ampsid=601] by ltDate of End of Redress Periodgt
After ltDate of End of Redress Periodgt you will need to contact both the FTC and NetSpend to receive your funds
NetSpend will mail checks within 30 days of receiving a valid request form
If instead of getting a check by filling out the form linked above you would like us to send your refund to an existing NetSpend card please contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 You may be required to submit identification documents to NetSpend to activate your card and access your money
For more information about the program visit wwwftcgovNetSpend If youhave any problems receiving your funds please let the FTC know by emailing NetSpendftcgov
Online Check Request Form
Under the terms of NetSpendrsquos settlement with the Federal Trade Commission [link to wwwftcgovNetSpend] NetSpend will refund certain customers who loaded money on cards
How you would like to receive your money
Case 116-cv-04203-AT Document 41 Filed 033117 Page 30 of 32
_____ Close my account and mail a check to the address on my account
_____ Close my account and mail a check to another address (please enter your new address below)
_____I would like to contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 to receive my funds via a NetSpend card I understand that with this option I may be required to submit identification documents to NetSpend to activate my card and access my money
New Address Street
City
State
Zip
Phone
Finish
Case 116-cv-04203-AT Document 41 Filed 033117 Page 31 of 32
Subject line of mailed letter NetSpend [or applicable NetSpend brand eg PayPal] Card Refunds Available
You may be eligible for a refund related to your [Brand Name (as applicable)] prepaid card [managed by NetSpend (as necessary where a branded name is used)] Under a settlement with the Federal Trade Commission NetSpend willrefund certain customers
If you wish to receive your money via check complete the personalized formbelow by ltDate of End of Redress Periodgt and return it to NetSpend in the enclosed envelope If you received a refund notice from NetSpend by email you may instead go to the personalized request form linked in the email to request your refund
After ltDate of End of Redress Periodgt you will need to contact both the FTC and NetSpend to receive your funds
NetSpend will mail checks within 30 days of receiving a valid request form
For more information about the program visit wwwftcgovNetSpend If youhave any problems receiving your funds please let the FTC know by emailing NetSpendftcgov
Reference Number _________ Name ltFirst Namegt ltLast Namegt Account Address ltStreetgt ltCitygt ltStategt ltZipgt
Check Request
_____ Close my account and mail a check to the address on my account
_____ Close my account and mail a check to another address (please enter your new address below)
Street
City
Case 116-cv-04203-AT Document 41 Filed 033117 Page 32 of 32
State
Zip
Phone
_____I would like to contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 to receive my funds via a NetSpend card I understand that with this option I may be required to submit identification documents to NetSpend to activate my card and access my money
Enclosure Envelope addressed to NetSpend with postage prepaid
create or maintain any record identified in this Subsection if Defendant
demonstrates that it is prohibited by banking law or regulation from
creating or maintaining such record
VIII COMPLIANCE MONITORING
IT IS FURTHER ORDERED that for the purpose of monitoring
Defendants compliance with this Order and any failure to transfer any
assets as required by this Order
A Within 14 days of receipt of a written request from a
representative of the Commission Defendant must submit additional
compliance reports or other requested information which must be sworn
under penalty of perjury and appear for depositions and produce
documents for inspection and copying The Commission is also authorized
to obtain discovery without further leave of court using any of the
procedures prescribed by Federal Rules of Civil Procedure 29 30 (including
telephonic depositions) 31 33 34 36 45 and 69
B For matters concerning this Order the Commission is
authorized to communicate directly with Defendant Defendant must
permit representatives of the Commission to interview any employee or
Page 23 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 23 of 32
person affiliated with Defendant who has agreed to such an
interview The person interviewed may have counsel present
C The Commission may use all other lawful means including
posing through its representatives as consumers suppliers or other
individuals or entities to Defendant or any individual or entity affiliated
with Defendant without the necessity of identification or prior notice
Nothing in this Order limits the Commissions lawful use of compulsory
process pursuant to Sections 9 and 20 of the FTC Act 15 USC sectsect 49
57b-l
IX RETENTION OF JURISDICTION
IT IS FURTHER ORDERED that this Court retains jurisdiction of this
matter for purposes of construction modification and enforcement of this
Order
SO ORDERED this ___ day of ____________ _ 2017
Amy Totenberg UNITED STATES DISTRICT JUDGE
Page 24 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 24 of 32
STIPULATED AND AGREED FOR
PLAINTIFF
FEDERAL TRADE COJM11ISSION
Dated jQH~ S ( 2-6 - - -=--=---------------- ------
7
Mark By fe~~
Glassman Adam M Wesolowski Federal Trade Commission 600 Pennsylvania Avenue NW Mailstop CC-10232 Washington DC 20580 Email mglassmanftcgov awesolowskiftcgov Phone (202) 326-2826 (Glassman) (202) 326-3068 (Wesolowski) Fax (202) 326-3768
By 12rdf-d-cgtltd ~ Robin L Rock (Bar No 629532) Federal Trade Commission 225 Peachtree Street NE Suite 1500 Atlanta GA 30303 Email rrockftcgov Phone (404) 656-1368 Fax (404) 656-1379
Attorneys for Plaintiff FEDERAL TRADE COMMISSION
Page 25 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 25 of 32
DE~gSPEND CORPORATION
Diane By~
McCartnev fv~~
- d Vice President Compliance NETSPEND CORPORATION
MORRISON amp FOERSTER LLP
Steven JVI Kaufmann Natalie Fleming ~olen 2000 Pennsylvania Avenue Vv ashington DC 20006 Telephone (212) 468middot8000 Ekfl 11fm ann~mofocom nilemi]1g_g_ol~n(~mofoco1y~
Sarah N Davis 425 Market Street San Francisco California 94105-2482 Telephone (415) 268-7000 Sarah Do yi s(ahn ofo com
By---~-=-~+----=-1i__~___ Michael B Terry Georgia Bar No 702582 BONDURANl MIXSON amp ELMORE LLP 1201 West Peachtree Street NV Suite 3900 Atlanta GA 30309 Email er1middotvbm elaw99nl (404) 881 middot4100
Attorneys for Defendant NetSpend Corporation
Page 26 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 26 of 32
Case 116-cv-04203-AT Document 41 Filed 033117 Page 27 of 32
Appendix A-1
[ON NETSPEND CORPORATION LETTERHEAD]
IMPORTANT NOTICE TO REMOVE NETSPEND CARD MATERIALS TO COMPLY WITH FEDERAL COURT ORDER
[insert addressee name][insert addressee address]
Dear [Third Party]
In response to a settlement with the Federal Trade Commission NetSpend Corporation (NetSpend) has agreed to a court order prohibiting the use of certain claims in marketing and other materials In accordance with this order NetSpend directs that within sixty (60) days of the date of this letter you stop using any existing NetSpend materials that state that NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval Attached hereto are copies photographs or images of sample materials subject to removal NetSpend willmake revised materials available to you shortly if it has not already provided such materials
Should you have any questions about compliance with this notification please contact [insert NetSpend contact person] Further information about the order can be obtained by visiting wwwftcgov and searching for ldquoNetSpendrdquo
Sincerely
[Name][Title]NetSpend Corporation
Case 116-cv-04203-AT Document 41 Filed 033117 Page 28 of 32
Appendix A-2
[ON NETSPEND CORPORATION LETTERHEAD]
IMPORTANT NOTICE TO UPDATE NETSPEND CARD MATERIALS TO COMPLY WITH FEDERAL COURT ORDER
[insert addressee name][insert addressee address]
Dear [Third Party]
In response to a settlement with the Federal Trade Commission NetSpend Corporation (NetSpend) has agreed to a court order prohibiting the use of certain claims in marketing and other materials In accordance with this order NetSpend [as applicable ndash as successor-in-interest to Skylight Financial Inc] directs that you affix corrective stickers to any existing NetSpend materials that state NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval
Enclosed with this letter are corrective stickers stating ldquoYou must meet identity verification requirements to activate and use the cardrdquo These stickers must be placed on the NetSpend materials in close proximity to such statements that NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval If the foregoingstatements are contained within an envelope or package that is already sealed then the sticker shall be placed in a prominent position on the outside of the envelope or package Attached also are copies photographs or images of sample materials illustrating the required correction
Should you have any questions about compliance with this notification please contact [insert NetSpend contact person] Further information about the order can be obtained by visiting wwwftcgov and searching for ldquoNetSpendrdquo
Sincerely
[Name][Title]NetSpend Corporation
Case 116-cv-04203-AT Document 41 Filed 033117 Page 29 of 32
Appendix B
Subject line of e-mail NetSpend [or such other NetSpend brand eg PayPal] Card Refunds Available
You may be eligible for a refund related to your [Branded Name (as applicable)] prepaid card [managed by NetSpend (as necessary where a branded name is used)] Under a settlement with the Federal Trade Commission NetSpend will refund certain customers
If you wish to receive your money via check complete this personalized request form [REQUEST FORM (Link to Personalized Survey per customer) Samplehttpswwwnetspendcomaccountcs surveymid= 1052492523ampsid=601] by ltDate of End of Redress Periodgt
After ltDate of End of Redress Periodgt you will need to contact both the FTC and NetSpend to receive your funds
NetSpend will mail checks within 30 days of receiving a valid request form
If instead of getting a check by filling out the form linked above you would like us to send your refund to an existing NetSpend card please contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 You may be required to submit identification documents to NetSpend to activate your card and access your money
For more information about the program visit wwwftcgovNetSpend If youhave any problems receiving your funds please let the FTC know by emailing NetSpendftcgov
Online Check Request Form
Under the terms of NetSpendrsquos settlement with the Federal Trade Commission [link to wwwftcgovNetSpend] NetSpend will refund certain customers who loaded money on cards
How you would like to receive your money
Case 116-cv-04203-AT Document 41 Filed 033117 Page 30 of 32
_____ Close my account and mail a check to the address on my account
_____ Close my account and mail a check to another address (please enter your new address below)
_____I would like to contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 to receive my funds via a NetSpend card I understand that with this option I may be required to submit identification documents to NetSpend to activate my card and access my money
New Address Street
City
State
Zip
Phone
Finish
Case 116-cv-04203-AT Document 41 Filed 033117 Page 31 of 32
Subject line of mailed letter NetSpend [or applicable NetSpend brand eg PayPal] Card Refunds Available
You may be eligible for a refund related to your [Brand Name (as applicable)] prepaid card [managed by NetSpend (as necessary where a branded name is used)] Under a settlement with the Federal Trade Commission NetSpend willrefund certain customers
If you wish to receive your money via check complete the personalized formbelow by ltDate of End of Redress Periodgt and return it to NetSpend in the enclosed envelope If you received a refund notice from NetSpend by email you may instead go to the personalized request form linked in the email to request your refund
After ltDate of End of Redress Periodgt you will need to contact both the FTC and NetSpend to receive your funds
NetSpend will mail checks within 30 days of receiving a valid request form
For more information about the program visit wwwftcgovNetSpend If youhave any problems receiving your funds please let the FTC know by emailing NetSpendftcgov
Reference Number _________ Name ltFirst Namegt ltLast Namegt Account Address ltStreetgt ltCitygt ltStategt ltZipgt
Check Request
_____ Close my account and mail a check to the address on my account
_____ Close my account and mail a check to another address (please enter your new address below)
Street
City
Case 116-cv-04203-AT Document 41 Filed 033117 Page 32 of 32
State
Zip
Phone
_____I would like to contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 to receive my funds via a NetSpend card I understand that with this option I may be required to submit identification documents to NetSpend to activate my card and access my money
Enclosure Envelope addressed to NetSpend with postage prepaid
person affiliated with Defendant who has agreed to such an
interview The person interviewed may have counsel present
C The Commission may use all other lawful means including
posing through its representatives as consumers suppliers or other
individuals or entities to Defendant or any individual or entity affiliated
with Defendant without the necessity of identification or prior notice
Nothing in this Order limits the Commissions lawful use of compulsory
process pursuant to Sections 9 and 20 of the FTC Act 15 USC sectsect 49
57b-l
IX RETENTION OF JURISDICTION
IT IS FURTHER ORDERED that this Court retains jurisdiction of this
matter for purposes of construction modification and enforcement of this
Order
SO ORDERED this ___ day of ____________ _ 2017
Amy Totenberg UNITED STATES DISTRICT JUDGE
Page 24 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 24 of 32
STIPULATED AND AGREED FOR
PLAINTIFF
FEDERAL TRADE COJM11ISSION
Dated jQH~ S ( 2-6 - - -=--=---------------- ------
7
Mark By fe~~
Glassman Adam M Wesolowski Federal Trade Commission 600 Pennsylvania Avenue NW Mailstop CC-10232 Washington DC 20580 Email mglassmanftcgov awesolowskiftcgov Phone (202) 326-2826 (Glassman) (202) 326-3068 (Wesolowski) Fax (202) 326-3768
By 12rdf-d-cgtltd ~ Robin L Rock (Bar No 629532) Federal Trade Commission 225 Peachtree Street NE Suite 1500 Atlanta GA 30303 Email rrockftcgov Phone (404) 656-1368 Fax (404) 656-1379
Attorneys for Plaintiff FEDERAL TRADE COMMISSION
Page 25 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 25 of 32
DE~gSPEND CORPORATION
Diane By~
McCartnev fv~~
- d Vice President Compliance NETSPEND CORPORATION
MORRISON amp FOERSTER LLP
Steven JVI Kaufmann Natalie Fleming ~olen 2000 Pennsylvania Avenue Vv ashington DC 20006 Telephone (212) 468middot8000 Ekfl 11fm ann~mofocom nilemi]1g_g_ol~n(~mofoco1y~
Sarah N Davis 425 Market Street San Francisco California 94105-2482 Telephone (415) 268-7000 Sarah Do yi s(ahn ofo com
By---~-=-~+----=-1i__~___ Michael B Terry Georgia Bar No 702582 BONDURANl MIXSON amp ELMORE LLP 1201 West Peachtree Street NV Suite 3900 Atlanta GA 30309 Email er1middotvbm elaw99nl (404) 881 middot4100
Attorneys for Defendant NetSpend Corporation
Page 26 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 26 of 32
Case 116-cv-04203-AT Document 41 Filed 033117 Page 27 of 32
Appendix A-1
[ON NETSPEND CORPORATION LETTERHEAD]
IMPORTANT NOTICE TO REMOVE NETSPEND CARD MATERIALS TO COMPLY WITH FEDERAL COURT ORDER
[insert addressee name][insert addressee address]
Dear [Third Party]
In response to a settlement with the Federal Trade Commission NetSpend Corporation (NetSpend) has agreed to a court order prohibiting the use of certain claims in marketing and other materials In accordance with this order NetSpend directs that within sixty (60) days of the date of this letter you stop using any existing NetSpend materials that state that NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval Attached hereto are copies photographs or images of sample materials subject to removal NetSpend willmake revised materials available to you shortly if it has not already provided such materials
Should you have any questions about compliance with this notification please contact [insert NetSpend contact person] Further information about the order can be obtained by visiting wwwftcgov and searching for ldquoNetSpendrdquo
Sincerely
[Name][Title]NetSpend Corporation
Case 116-cv-04203-AT Document 41 Filed 033117 Page 28 of 32
Appendix A-2
[ON NETSPEND CORPORATION LETTERHEAD]
IMPORTANT NOTICE TO UPDATE NETSPEND CARD MATERIALS TO COMPLY WITH FEDERAL COURT ORDER
[insert addressee name][insert addressee address]
Dear [Third Party]
In response to a settlement with the Federal Trade Commission NetSpend Corporation (NetSpend) has agreed to a court order prohibiting the use of certain claims in marketing and other materials In accordance with this order NetSpend [as applicable ndash as successor-in-interest to Skylight Financial Inc] directs that you affix corrective stickers to any existing NetSpend materials that state NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval
Enclosed with this letter are corrective stickers stating ldquoYou must meet identity verification requirements to activate and use the cardrdquo These stickers must be placed on the NetSpend materials in close proximity to such statements that NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval If the foregoingstatements are contained within an envelope or package that is already sealed then the sticker shall be placed in a prominent position on the outside of the envelope or package Attached also are copies photographs or images of sample materials illustrating the required correction
Should you have any questions about compliance with this notification please contact [insert NetSpend contact person] Further information about the order can be obtained by visiting wwwftcgov and searching for ldquoNetSpendrdquo
Sincerely
[Name][Title]NetSpend Corporation
Case 116-cv-04203-AT Document 41 Filed 033117 Page 29 of 32
Appendix B
Subject line of e-mail NetSpend [or such other NetSpend brand eg PayPal] Card Refunds Available
You may be eligible for a refund related to your [Branded Name (as applicable)] prepaid card [managed by NetSpend (as necessary where a branded name is used)] Under a settlement with the Federal Trade Commission NetSpend will refund certain customers
If you wish to receive your money via check complete this personalized request form [REQUEST FORM (Link to Personalized Survey per customer) Samplehttpswwwnetspendcomaccountcs surveymid= 1052492523ampsid=601] by ltDate of End of Redress Periodgt
After ltDate of End of Redress Periodgt you will need to contact both the FTC and NetSpend to receive your funds
NetSpend will mail checks within 30 days of receiving a valid request form
If instead of getting a check by filling out the form linked above you would like us to send your refund to an existing NetSpend card please contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 You may be required to submit identification documents to NetSpend to activate your card and access your money
For more information about the program visit wwwftcgovNetSpend If youhave any problems receiving your funds please let the FTC know by emailing NetSpendftcgov
Online Check Request Form
Under the terms of NetSpendrsquos settlement with the Federal Trade Commission [link to wwwftcgovNetSpend] NetSpend will refund certain customers who loaded money on cards
How you would like to receive your money
Case 116-cv-04203-AT Document 41 Filed 033117 Page 30 of 32
_____ Close my account and mail a check to the address on my account
_____ Close my account and mail a check to another address (please enter your new address below)
_____I would like to contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 to receive my funds via a NetSpend card I understand that with this option I may be required to submit identification documents to NetSpend to activate my card and access my money
New Address Street
City
State
Zip
Phone
Finish
Case 116-cv-04203-AT Document 41 Filed 033117 Page 31 of 32
Subject line of mailed letter NetSpend [or applicable NetSpend brand eg PayPal] Card Refunds Available
You may be eligible for a refund related to your [Brand Name (as applicable)] prepaid card [managed by NetSpend (as necessary where a branded name is used)] Under a settlement with the Federal Trade Commission NetSpend willrefund certain customers
If you wish to receive your money via check complete the personalized formbelow by ltDate of End of Redress Periodgt and return it to NetSpend in the enclosed envelope If you received a refund notice from NetSpend by email you may instead go to the personalized request form linked in the email to request your refund
After ltDate of End of Redress Periodgt you will need to contact both the FTC and NetSpend to receive your funds
NetSpend will mail checks within 30 days of receiving a valid request form
For more information about the program visit wwwftcgovNetSpend If youhave any problems receiving your funds please let the FTC know by emailing NetSpendftcgov
Reference Number _________ Name ltFirst Namegt ltLast Namegt Account Address ltStreetgt ltCitygt ltStategt ltZipgt
Check Request
_____ Close my account and mail a check to the address on my account
_____ Close my account and mail a check to another address (please enter your new address below)
Street
City
Case 116-cv-04203-AT Document 41 Filed 033117 Page 32 of 32
State
Zip
Phone
_____I would like to contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 to receive my funds via a NetSpend card I understand that with this option I may be required to submit identification documents to NetSpend to activate my card and access my money
Enclosure Envelope addressed to NetSpend with postage prepaid
STIPULATED AND AGREED FOR
PLAINTIFF
FEDERAL TRADE COJM11ISSION
Dated jQH~ S ( 2-6 - - -=--=---------------- ------
7
Mark By fe~~
Glassman Adam M Wesolowski Federal Trade Commission 600 Pennsylvania Avenue NW Mailstop CC-10232 Washington DC 20580 Email mglassmanftcgov awesolowskiftcgov Phone (202) 326-2826 (Glassman) (202) 326-3068 (Wesolowski) Fax (202) 326-3768
By 12rdf-d-cgtltd ~ Robin L Rock (Bar No 629532) Federal Trade Commission 225 Peachtree Street NE Suite 1500 Atlanta GA 30303 Email rrockftcgov Phone (404) 656-1368 Fax (404) 656-1379
Attorneys for Plaintiff FEDERAL TRADE COMMISSION
Page 25 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 25 of 32
DE~gSPEND CORPORATION
Diane By~
McCartnev fv~~
- d Vice President Compliance NETSPEND CORPORATION
MORRISON amp FOERSTER LLP
Steven JVI Kaufmann Natalie Fleming ~olen 2000 Pennsylvania Avenue Vv ashington DC 20006 Telephone (212) 468middot8000 Ekfl 11fm ann~mofocom nilemi]1g_g_ol~n(~mofoco1y~
Sarah N Davis 425 Market Street San Francisco California 94105-2482 Telephone (415) 268-7000 Sarah Do yi s(ahn ofo com
By---~-=-~+----=-1i__~___ Michael B Terry Georgia Bar No 702582 BONDURANl MIXSON amp ELMORE LLP 1201 West Peachtree Street NV Suite 3900 Atlanta GA 30309 Email er1middotvbm elaw99nl (404) 881 middot4100
Attorneys for Defendant NetSpend Corporation
Page 26 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 26 of 32
Case 116-cv-04203-AT Document 41 Filed 033117 Page 27 of 32
Appendix A-1
[ON NETSPEND CORPORATION LETTERHEAD]
IMPORTANT NOTICE TO REMOVE NETSPEND CARD MATERIALS TO COMPLY WITH FEDERAL COURT ORDER
[insert addressee name][insert addressee address]
Dear [Third Party]
In response to a settlement with the Federal Trade Commission NetSpend Corporation (NetSpend) has agreed to a court order prohibiting the use of certain claims in marketing and other materials In accordance with this order NetSpend directs that within sixty (60) days of the date of this letter you stop using any existing NetSpend materials that state that NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval Attached hereto are copies photographs or images of sample materials subject to removal NetSpend willmake revised materials available to you shortly if it has not already provided such materials
Should you have any questions about compliance with this notification please contact [insert NetSpend contact person] Further information about the order can be obtained by visiting wwwftcgov and searching for ldquoNetSpendrdquo
Sincerely
[Name][Title]NetSpend Corporation
Case 116-cv-04203-AT Document 41 Filed 033117 Page 28 of 32
Appendix A-2
[ON NETSPEND CORPORATION LETTERHEAD]
IMPORTANT NOTICE TO UPDATE NETSPEND CARD MATERIALS TO COMPLY WITH FEDERAL COURT ORDER
[insert addressee name][insert addressee address]
Dear [Third Party]
In response to a settlement with the Federal Trade Commission NetSpend Corporation (NetSpend) has agreed to a court order prohibiting the use of certain claims in marketing and other materials In accordance with this order NetSpend [as applicable ndash as successor-in-interest to Skylight Financial Inc] directs that you affix corrective stickers to any existing NetSpend materials that state NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval
Enclosed with this letter are corrective stickers stating ldquoYou must meet identity verification requirements to activate and use the cardrdquo These stickers must be placed on the NetSpend materials in close proximity to such statements that NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval If the foregoingstatements are contained within an envelope or package that is already sealed then the sticker shall be placed in a prominent position on the outside of the envelope or package Attached also are copies photographs or images of sample materials illustrating the required correction
Should you have any questions about compliance with this notification please contact [insert NetSpend contact person] Further information about the order can be obtained by visiting wwwftcgov and searching for ldquoNetSpendrdquo
Sincerely
[Name][Title]NetSpend Corporation
Case 116-cv-04203-AT Document 41 Filed 033117 Page 29 of 32
Appendix B
Subject line of e-mail NetSpend [or such other NetSpend brand eg PayPal] Card Refunds Available
You may be eligible for a refund related to your [Branded Name (as applicable)] prepaid card [managed by NetSpend (as necessary where a branded name is used)] Under a settlement with the Federal Trade Commission NetSpend will refund certain customers
If you wish to receive your money via check complete this personalized request form [REQUEST FORM (Link to Personalized Survey per customer) Samplehttpswwwnetspendcomaccountcs surveymid= 1052492523ampsid=601] by ltDate of End of Redress Periodgt
After ltDate of End of Redress Periodgt you will need to contact both the FTC and NetSpend to receive your funds
NetSpend will mail checks within 30 days of receiving a valid request form
If instead of getting a check by filling out the form linked above you would like us to send your refund to an existing NetSpend card please contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 You may be required to submit identification documents to NetSpend to activate your card and access your money
For more information about the program visit wwwftcgovNetSpend If youhave any problems receiving your funds please let the FTC know by emailing NetSpendftcgov
Online Check Request Form
Under the terms of NetSpendrsquos settlement with the Federal Trade Commission [link to wwwftcgovNetSpend] NetSpend will refund certain customers who loaded money on cards
How you would like to receive your money
Case 116-cv-04203-AT Document 41 Filed 033117 Page 30 of 32
_____ Close my account and mail a check to the address on my account
_____ Close my account and mail a check to another address (please enter your new address below)
_____I would like to contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 to receive my funds via a NetSpend card I understand that with this option I may be required to submit identification documents to NetSpend to activate my card and access my money
New Address Street
City
State
Zip
Phone
Finish
Case 116-cv-04203-AT Document 41 Filed 033117 Page 31 of 32
Subject line of mailed letter NetSpend [or applicable NetSpend brand eg PayPal] Card Refunds Available
You may be eligible for a refund related to your [Brand Name (as applicable)] prepaid card [managed by NetSpend (as necessary where a branded name is used)] Under a settlement with the Federal Trade Commission NetSpend willrefund certain customers
If you wish to receive your money via check complete the personalized formbelow by ltDate of End of Redress Periodgt and return it to NetSpend in the enclosed envelope If you received a refund notice from NetSpend by email you may instead go to the personalized request form linked in the email to request your refund
After ltDate of End of Redress Periodgt you will need to contact both the FTC and NetSpend to receive your funds
NetSpend will mail checks within 30 days of receiving a valid request form
For more information about the program visit wwwftcgovNetSpend If youhave any problems receiving your funds please let the FTC know by emailing NetSpendftcgov
Reference Number _________ Name ltFirst Namegt ltLast Namegt Account Address ltStreetgt ltCitygt ltStategt ltZipgt
Check Request
_____ Close my account and mail a check to the address on my account
_____ Close my account and mail a check to another address (please enter your new address below)
Street
City
Case 116-cv-04203-AT Document 41 Filed 033117 Page 32 of 32
State
Zip
Phone
_____I would like to contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 to receive my funds via a NetSpend card I understand that with this option I may be required to submit identification documents to NetSpend to activate my card and access my money
Enclosure Envelope addressed to NetSpend with postage prepaid
DE~gSPEND CORPORATION
Diane By~
McCartnev fv~~
- d Vice President Compliance NETSPEND CORPORATION
MORRISON amp FOERSTER LLP
Steven JVI Kaufmann Natalie Fleming ~olen 2000 Pennsylvania Avenue Vv ashington DC 20006 Telephone (212) 468middot8000 Ekfl 11fm ann~mofocom nilemi]1g_g_ol~n(~mofoco1y~
Sarah N Davis 425 Market Street San Francisco California 94105-2482 Telephone (415) 268-7000 Sarah Do yi s(ahn ofo com
By---~-=-~+----=-1i__~___ Michael B Terry Georgia Bar No 702582 BONDURANl MIXSON amp ELMORE LLP 1201 West Peachtree Street NV Suite 3900 Atlanta GA 30309 Email er1middotvbm elaw99nl (404) 881 middot4100
Attorneys for Defendant NetSpend Corporation
Page 26 of 26
Case 116-cv-04203-AT Document 41 Filed 033117 Page 26 of 32
Case 116-cv-04203-AT Document 41 Filed 033117 Page 27 of 32
Appendix A-1
[ON NETSPEND CORPORATION LETTERHEAD]
IMPORTANT NOTICE TO REMOVE NETSPEND CARD MATERIALS TO COMPLY WITH FEDERAL COURT ORDER
[insert addressee name][insert addressee address]
Dear [Third Party]
In response to a settlement with the Federal Trade Commission NetSpend Corporation (NetSpend) has agreed to a court order prohibiting the use of certain claims in marketing and other materials In accordance with this order NetSpend directs that within sixty (60) days of the date of this letter you stop using any existing NetSpend materials that state that NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval Attached hereto are copies photographs or images of sample materials subject to removal NetSpend willmake revised materials available to you shortly if it has not already provided such materials
Should you have any questions about compliance with this notification please contact [insert NetSpend contact person] Further information about the order can be obtained by visiting wwwftcgov and searching for ldquoNetSpendrdquo
Sincerely
[Name][Title]NetSpend Corporation
Case 116-cv-04203-AT Document 41 Filed 033117 Page 28 of 32
Appendix A-2
[ON NETSPEND CORPORATION LETTERHEAD]
IMPORTANT NOTICE TO UPDATE NETSPEND CARD MATERIALS TO COMPLY WITH FEDERAL COURT ORDER
[insert addressee name][insert addressee address]
Dear [Third Party]
In response to a settlement with the Federal Trade Commission NetSpend Corporation (NetSpend) has agreed to a court order prohibiting the use of certain claims in marketing and other materials In accordance with this order NetSpend [as applicable ndash as successor-in-interest to Skylight Financial Inc] directs that you affix corrective stickers to any existing NetSpend materials that state NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval
Enclosed with this letter are corrective stickers stating ldquoYou must meet identity verification requirements to activate and use the cardrdquo These stickers must be placed on the NetSpend materials in close proximity to such statements that NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval If the foregoingstatements are contained within an envelope or package that is already sealed then the sticker shall be placed in a prominent position on the outside of the envelope or package Attached also are copies photographs or images of sample materials illustrating the required correction
Should you have any questions about compliance with this notification please contact [insert NetSpend contact person] Further information about the order can be obtained by visiting wwwftcgov and searching for ldquoNetSpendrdquo
Sincerely
[Name][Title]NetSpend Corporation
Case 116-cv-04203-AT Document 41 Filed 033117 Page 29 of 32
Appendix B
Subject line of e-mail NetSpend [or such other NetSpend brand eg PayPal] Card Refunds Available
You may be eligible for a refund related to your [Branded Name (as applicable)] prepaid card [managed by NetSpend (as necessary where a branded name is used)] Under a settlement with the Federal Trade Commission NetSpend will refund certain customers
If you wish to receive your money via check complete this personalized request form [REQUEST FORM (Link to Personalized Survey per customer) Samplehttpswwwnetspendcomaccountcs surveymid= 1052492523ampsid=601] by ltDate of End of Redress Periodgt
After ltDate of End of Redress Periodgt you will need to contact both the FTC and NetSpend to receive your funds
NetSpend will mail checks within 30 days of receiving a valid request form
If instead of getting a check by filling out the form linked above you would like us to send your refund to an existing NetSpend card please contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 You may be required to submit identification documents to NetSpend to activate your card and access your money
For more information about the program visit wwwftcgovNetSpend If youhave any problems receiving your funds please let the FTC know by emailing NetSpendftcgov
Online Check Request Form
Under the terms of NetSpendrsquos settlement with the Federal Trade Commission [link to wwwftcgovNetSpend] NetSpend will refund certain customers who loaded money on cards
How you would like to receive your money
Case 116-cv-04203-AT Document 41 Filed 033117 Page 30 of 32
_____ Close my account and mail a check to the address on my account
_____ Close my account and mail a check to another address (please enter your new address below)
_____I would like to contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 to receive my funds via a NetSpend card I understand that with this option I may be required to submit identification documents to NetSpend to activate my card and access my money
New Address Street
City
State
Zip
Phone
Finish
Case 116-cv-04203-AT Document 41 Filed 033117 Page 31 of 32
Subject line of mailed letter NetSpend [or applicable NetSpend brand eg PayPal] Card Refunds Available
You may be eligible for a refund related to your [Brand Name (as applicable)] prepaid card [managed by NetSpend (as necessary where a branded name is used)] Under a settlement with the Federal Trade Commission NetSpend willrefund certain customers
If you wish to receive your money via check complete the personalized formbelow by ltDate of End of Redress Periodgt and return it to NetSpend in the enclosed envelope If you received a refund notice from NetSpend by email you may instead go to the personalized request form linked in the email to request your refund
After ltDate of End of Redress Periodgt you will need to contact both the FTC and NetSpend to receive your funds
NetSpend will mail checks within 30 days of receiving a valid request form
For more information about the program visit wwwftcgovNetSpend If youhave any problems receiving your funds please let the FTC know by emailing NetSpendftcgov
Reference Number _________ Name ltFirst Namegt ltLast Namegt Account Address ltStreetgt ltCitygt ltStategt ltZipgt
Check Request
_____ Close my account and mail a check to the address on my account
_____ Close my account and mail a check to another address (please enter your new address below)
Street
City
Case 116-cv-04203-AT Document 41 Filed 033117 Page 32 of 32
State
Zip
Phone
_____I would like to contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 to receive my funds via a NetSpend card I understand that with this option I may be required to submit identification documents to NetSpend to activate my card and access my money
Enclosure Envelope addressed to NetSpend with postage prepaid
Case 116-cv-04203-AT Document 41 Filed 033117 Page 27 of 32
Appendix A-1
[ON NETSPEND CORPORATION LETTERHEAD]
IMPORTANT NOTICE TO REMOVE NETSPEND CARD MATERIALS TO COMPLY WITH FEDERAL COURT ORDER
[insert addressee name][insert addressee address]
Dear [Third Party]
In response to a settlement with the Federal Trade Commission NetSpend Corporation (NetSpend) has agreed to a court order prohibiting the use of certain claims in marketing and other materials In accordance with this order NetSpend directs that within sixty (60) days of the date of this letter you stop using any existing NetSpend materials that state that NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval Attached hereto are copies photographs or images of sample materials subject to removal NetSpend willmake revised materials available to you shortly if it has not already provided such materials
Should you have any questions about compliance with this notification please contact [insert NetSpend contact person] Further information about the order can be obtained by visiting wwwftcgov and searching for ldquoNetSpendrdquo
Sincerely
[Name][Title]NetSpend Corporation
Case 116-cv-04203-AT Document 41 Filed 033117 Page 28 of 32
Appendix A-2
[ON NETSPEND CORPORATION LETTERHEAD]
IMPORTANT NOTICE TO UPDATE NETSPEND CARD MATERIALS TO COMPLY WITH FEDERAL COURT ORDER
[insert addressee name][insert addressee address]
Dear [Third Party]
In response to a settlement with the Federal Trade Commission NetSpend Corporation (NetSpend) has agreed to a court order prohibiting the use of certain claims in marketing and other materials In accordance with this order NetSpend [as applicable ndash as successor-in-interest to Skylight Financial Inc] directs that you affix corrective stickers to any existing NetSpend materials that state NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval
Enclosed with this letter are corrective stickers stating ldquoYou must meet identity verification requirements to activate and use the cardrdquo These stickers must be placed on the NetSpend materials in close proximity to such statements that NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval If the foregoingstatements are contained within an envelope or package that is already sealed then the sticker shall be placed in a prominent position on the outside of the envelope or package Attached also are copies photographs or images of sample materials illustrating the required correction
Should you have any questions about compliance with this notification please contact [insert NetSpend contact person] Further information about the order can be obtained by visiting wwwftcgov and searching for ldquoNetSpendrdquo
Sincerely
[Name][Title]NetSpend Corporation
Case 116-cv-04203-AT Document 41 Filed 033117 Page 29 of 32
Appendix B
Subject line of e-mail NetSpend [or such other NetSpend brand eg PayPal] Card Refunds Available
You may be eligible for a refund related to your [Branded Name (as applicable)] prepaid card [managed by NetSpend (as necessary where a branded name is used)] Under a settlement with the Federal Trade Commission NetSpend will refund certain customers
If you wish to receive your money via check complete this personalized request form [REQUEST FORM (Link to Personalized Survey per customer) Samplehttpswwwnetspendcomaccountcs surveymid= 1052492523ampsid=601] by ltDate of End of Redress Periodgt
After ltDate of End of Redress Periodgt you will need to contact both the FTC and NetSpend to receive your funds
NetSpend will mail checks within 30 days of receiving a valid request form
If instead of getting a check by filling out the form linked above you would like us to send your refund to an existing NetSpend card please contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 You may be required to submit identification documents to NetSpend to activate your card and access your money
For more information about the program visit wwwftcgovNetSpend If youhave any problems receiving your funds please let the FTC know by emailing NetSpendftcgov
Online Check Request Form
Under the terms of NetSpendrsquos settlement with the Federal Trade Commission [link to wwwftcgovNetSpend] NetSpend will refund certain customers who loaded money on cards
How you would like to receive your money
Case 116-cv-04203-AT Document 41 Filed 033117 Page 30 of 32
_____ Close my account and mail a check to the address on my account
_____ Close my account and mail a check to another address (please enter your new address below)
_____I would like to contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 to receive my funds via a NetSpend card I understand that with this option I may be required to submit identification documents to NetSpend to activate my card and access my money
New Address Street
City
State
Zip
Phone
Finish
Case 116-cv-04203-AT Document 41 Filed 033117 Page 31 of 32
Subject line of mailed letter NetSpend [or applicable NetSpend brand eg PayPal] Card Refunds Available
You may be eligible for a refund related to your [Brand Name (as applicable)] prepaid card [managed by NetSpend (as necessary where a branded name is used)] Under a settlement with the Federal Trade Commission NetSpend willrefund certain customers
If you wish to receive your money via check complete the personalized formbelow by ltDate of End of Redress Periodgt and return it to NetSpend in the enclosed envelope If you received a refund notice from NetSpend by email you may instead go to the personalized request form linked in the email to request your refund
After ltDate of End of Redress Periodgt you will need to contact both the FTC and NetSpend to receive your funds
NetSpend will mail checks within 30 days of receiving a valid request form
For more information about the program visit wwwftcgovNetSpend If youhave any problems receiving your funds please let the FTC know by emailing NetSpendftcgov
Reference Number _________ Name ltFirst Namegt ltLast Namegt Account Address ltStreetgt ltCitygt ltStategt ltZipgt
Check Request
_____ Close my account and mail a check to the address on my account
_____ Close my account and mail a check to another address (please enter your new address below)
Street
City
Case 116-cv-04203-AT Document 41 Filed 033117 Page 32 of 32
State
Zip
Phone
_____I would like to contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 to receive my funds via a NetSpend card I understand that with this option I may be required to submit identification documents to NetSpend to activate my card and access my money
Enclosure Envelope addressed to NetSpend with postage prepaid
Case 116-cv-04203-AT Document 41 Filed 033117 Page 28 of 32
Appendix A-2
[ON NETSPEND CORPORATION LETTERHEAD]
IMPORTANT NOTICE TO UPDATE NETSPEND CARD MATERIALS TO COMPLY WITH FEDERAL COURT ORDER
[insert addressee name][insert addressee address]
Dear [Third Party]
In response to a settlement with the Federal Trade Commission NetSpend Corporation (NetSpend) has agreed to a court order prohibiting the use of certain claims in marketing and other materials In accordance with this order NetSpend [as applicable ndash as successor-in-interest to Skylight Financial Inc] directs that you affix corrective stickers to any existing NetSpend materials that state NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval
Enclosed with this letter are corrective stickers stating ldquoYou must meet identity verification requirements to activate and use the cardrdquo These stickers must be placed on the NetSpend materials in close proximity to such statements that NetSpendrsquos cards provide immediate or instant access to funds are ready to use today or provide guaranteed approval If the foregoingstatements are contained within an envelope or package that is already sealed then the sticker shall be placed in a prominent position on the outside of the envelope or package Attached also are copies photographs or images of sample materials illustrating the required correction
Should you have any questions about compliance with this notification please contact [insert NetSpend contact person] Further information about the order can be obtained by visiting wwwftcgov and searching for ldquoNetSpendrdquo
Sincerely
[Name][Title]NetSpend Corporation
Case 116-cv-04203-AT Document 41 Filed 033117 Page 29 of 32
Appendix B
Subject line of e-mail NetSpend [or such other NetSpend brand eg PayPal] Card Refunds Available
You may be eligible for a refund related to your [Branded Name (as applicable)] prepaid card [managed by NetSpend (as necessary where a branded name is used)] Under a settlement with the Federal Trade Commission NetSpend will refund certain customers
If you wish to receive your money via check complete this personalized request form [REQUEST FORM (Link to Personalized Survey per customer) Samplehttpswwwnetspendcomaccountcs surveymid= 1052492523ampsid=601] by ltDate of End of Redress Periodgt
After ltDate of End of Redress Periodgt you will need to contact both the FTC and NetSpend to receive your funds
NetSpend will mail checks within 30 days of receiving a valid request form
If instead of getting a check by filling out the form linked above you would like us to send your refund to an existing NetSpend card please contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 You may be required to submit identification documents to NetSpend to activate your card and access your money
For more information about the program visit wwwftcgovNetSpend If youhave any problems receiving your funds please let the FTC know by emailing NetSpendftcgov
Online Check Request Form
Under the terms of NetSpendrsquos settlement with the Federal Trade Commission [link to wwwftcgovNetSpend] NetSpend will refund certain customers who loaded money on cards
How you would like to receive your money
Case 116-cv-04203-AT Document 41 Filed 033117 Page 30 of 32
_____ Close my account and mail a check to the address on my account
_____ Close my account and mail a check to another address (please enter your new address below)
_____I would like to contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 to receive my funds via a NetSpend card I understand that with this option I may be required to submit identification documents to NetSpend to activate my card and access my money
New Address Street
City
State
Zip
Phone
Finish
Case 116-cv-04203-AT Document 41 Filed 033117 Page 31 of 32
Subject line of mailed letter NetSpend [or applicable NetSpend brand eg PayPal] Card Refunds Available
You may be eligible for a refund related to your [Brand Name (as applicable)] prepaid card [managed by NetSpend (as necessary where a branded name is used)] Under a settlement with the Federal Trade Commission NetSpend willrefund certain customers
If you wish to receive your money via check complete the personalized formbelow by ltDate of End of Redress Periodgt and return it to NetSpend in the enclosed envelope If you received a refund notice from NetSpend by email you may instead go to the personalized request form linked in the email to request your refund
After ltDate of End of Redress Periodgt you will need to contact both the FTC and NetSpend to receive your funds
NetSpend will mail checks within 30 days of receiving a valid request form
For more information about the program visit wwwftcgovNetSpend If youhave any problems receiving your funds please let the FTC know by emailing NetSpendftcgov
Reference Number _________ Name ltFirst Namegt ltLast Namegt Account Address ltStreetgt ltCitygt ltStategt ltZipgt
Check Request
_____ Close my account and mail a check to the address on my account
_____ Close my account and mail a check to another address (please enter your new address below)
Street
City
Case 116-cv-04203-AT Document 41 Filed 033117 Page 32 of 32
State
Zip
Phone
_____I would like to contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 to receive my funds via a NetSpend card I understand that with this option I may be required to submit identification documents to NetSpend to activate my card and access my money
Enclosure Envelope addressed to NetSpend with postage prepaid
Case 116-cv-04203-AT Document 41 Filed 033117 Page 29 of 32
Appendix B
Subject line of e-mail NetSpend [or such other NetSpend brand eg PayPal] Card Refunds Available
You may be eligible for a refund related to your [Branded Name (as applicable)] prepaid card [managed by NetSpend (as necessary where a branded name is used)] Under a settlement with the Federal Trade Commission NetSpend will refund certain customers
If you wish to receive your money via check complete this personalized request form [REQUEST FORM (Link to Personalized Survey per customer) Samplehttpswwwnetspendcomaccountcs surveymid= 1052492523ampsid=601] by ltDate of End of Redress Periodgt
After ltDate of End of Redress Periodgt you will need to contact both the FTC and NetSpend to receive your funds
NetSpend will mail checks within 30 days of receiving a valid request form
If instead of getting a check by filling out the form linked above you would like us to send your refund to an existing NetSpend card please contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 You may be required to submit identification documents to NetSpend to activate your card and access your money
For more information about the program visit wwwftcgovNetSpend If youhave any problems receiving your funds please let the FTC know by emailing NetSpendftcgov
Online Check Request Form
Under the terms of NetSpendrsquos settlement with the Federal Trade Commission [link to wwwftcgovNetSpend] NetSpend will refund certain customers who loaded money on cards
How you would like to receive your money
Case 116-cv-04203-AT Document 41 Filed 033117 Page 30 of 32
_____ Close my account and mail a check to the address on my account
_____ Close my account and mail a check to another address (please enter your new address below)
_____I would like to contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 to receive my funds via a NetSpend card I understand that with this option I may be required to submit identification documents to NetSpend to activate my card and access my money
New Address Street
City
State
Zip
Phone
Finish
Case 116-cv-04203-AT Document 41 Filed 033117 Page 31 of 32
Subject line of mailed letter NetSpend [or applicable NetSpend brand eg PayPal] Card Refunds Available
You may be eligible for a refund related to your [Brand Name (as applicable)] prepaid card [managed by NetSpend (as necessary where a branded name is used)] Under a settlement with the Federal Trade Commission NetSpend willrefund certain customers
If you wish to receive your money via check complete the personalized formbelow by ltDate of End of Redress Periodgt and return it to NetSpend in the enclosed envelope If you received a refund notice from NetSpend by email you may instead go to the personalized request form linked in the email to request your refund
After ltDate of End of Redress Periodgt you will need to contact both the FTC and NetSpend to receive your funds
NetSpend will mail checks within 30 days of receiving a valid request form
For more information about the program visit wwwftcgovNetSpend If youhave any problems receiving your funds please let the FTC know by emailing NetSpendftcgov
Reference Number _________ Name ltFirst Namegt ltLast Namegt Account Address ltStreetgt ltCitygt ltStategt ltZipgt
Check Request
_____ Close my account and mail a check to the address on my account
_____ Close my account and mail a check to another address (please enter your new address below)
Street
City
Case 116-cv-04203-AT Document 41 Filed 033117 Page 32 of 32
State
Zip
Phone
_____I would like to contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 to receive my funds via a NetSpend card I understand that with this option I may be required to submit identification documents to NetSpend to activate my card and access my money
Enclosure Envelope addressed to NetSpend with postage prepaid
Case 116-cv-04203-AT Document 41 Filed 033117 Page 30 of 32
_____ Close my account and mail a check to the address on my account
_____ Close my account and mail a check to another address (please enter your new address below)
_____I would like to contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 to receive my funds via a NetSpend card I understand that with this option I may be required to submit identification documents to NetSpend to activate my card and access my money
New Address Street
City
State
Zip
Phone
Finish
Case 116-cv-04203-AT Document 41 Filed 033117 Page 31 of 32
Subject line of mailed letter NetSpend [or applicable NetSpend brand eg PayPal] Card Refunds Available
You may be eligible for a refund related to your [Brand Name (as applicable)] prepaid card [managed by NetSpend (as necessary where a branded name is used)] Under a settlement with the Federal Trade Commission NetSpend willrefund certain customers
If you wish to receive your money via check complete the personalized formbelow by ltDate of End of Redress Periodgt and return it to NetSpend in the enclosed envelope If you received a refund notice from NetSpend by email you may instead go to the personalized request form linked in the email to request your refund
After ltDate of End of Redress Periodgt you will need to contact both the FTC and NetSpend to receive your funds
NetSpend will mail checks within 30 days of receiving a valid request form
For more information about the program visit wwwftcgovNetSpend If youhave any problems receiving your funds please let the FTC know by emailing NetSpendftcgov
Reference Number _________ Name ltFirst Namegt ltLast Namegt Account Address ltStreetgt ltCitygt ltStategt ltZipgt
Check Request
_____ Close my account and mail a check to the address on my account
_____ Close my account and mail a check to another address (please enter your new address below)
Street
City
Case 116-cv-04203-AT Document 41 Filed 033117 Page 32 of 32
State
Zip
Phone
_____I would like to contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 to receive my funds via a NetSpend card I understand that with this option I may be required to submit identification documents to NetSpend to activate my card and access my money
Enclosure Envelope addressed to NetSpend with postage prepaid
Case 116-cv-04203-AT Document 41 Filed 033117 Page 31 of 32
Subject line of mailed letter NetSpend [or applicable NetSpend brand eg PayPal] Card Refunds Available
You may be eligible for a refund related to your [Brand Name (as applicable)] prepaid card [managed by NetSpend (as necessary where a branded name is used)] Under a settlement with the Federal Trade Commission NetSpend willrefund certain customers
If you wish to receive your money via check complete the personalized formbelow by ltDate of End of Redress Periodgt and return it to NetSpend in the enclosed envelope If you received a refund notice from NetSpend by email you may instead go to the personalized request form linked in the email to request your refund
After ltDate of End of Redress Periodgt you will need to contact both the FTC and NetSpend to receive your funds
NetSpend will mail checks within 30 days of receiving a valid request form
For more information about the program visit wwwftcgovNetSpend If youhave any problems receiving your funds please let the FTC know by emailing NetSpendftcgov
Reference Number _________ Name ltFirst Namegt ltLast Namegt Account Address ltStreetgt ltCitygt ltStategt ltZipgt
Check Request
_____ Close my account and mail a check to the address on my account
_____ Close my account and mail a check to another address (please enter your new address below)
Street
City
Case 116-cv-04203-AT Document 41 Filed 033117 Page 32 of 32
State
Zip
Phone
_____I would like to contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 to receive my funds via a NetSpend card I understand that with this option I may be required to submit identification documents to NetSpend to activate my card and access my money
Enclosure Envelope addressed to NetSpend with postage prepaid
Case 116-cv-04203-AT Document 41 Filed 033117 Page 32 of 32
State
Zip
Phone
_____I would like to contact NetSpend at ftcsettlementnetspendcom or 1-800-259-8242 to receive my funds via a NetSpend card I understand that with this option I may be required to submit identification documents to NetSpend to activate my card and access my money
Enclosure Envelope addressed to NetSpend with postage prepaid
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